INCOME TAX8 Sept 2026
Earn up to ₹21,000 a month? Know your annual bonus eligibility, calculation and payment deadlines as per Code on Wages
The Labour Ministry has issued new notifications on statutory bonuses. Workers earning up to ₹21,000 a month may now be eligible, subject to conditions. Those above this limit are not entitled to mandatory bonuses. If eligible, you get a minimum of 8⅓% of wages, or ₹100, whichever is higher, and payment usually arrives within 8 months of the accounting year-end. Check your eligibility and raise issues early.
Key Statutory Highlights
- Employees earning up to ₹21,000 per month may qualify for bonuses, subject to conditions.
- The minimum bonus is 8⅓% of wages earned, or ₹100, whichever is higher.
- Bonus must be paid within 8 months of the end of the employer's accounting year, unless an extension is approved.
Actionable Advice for Taxpayers / Founders:If your monthly wage is ₹21,000 or below, confirm with your employer that the minimum bonus is being calculated and paid on time.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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