Overview of eligibility under Code on Wages
The Labour Ministry has issued notifications clarifying how the annual bonus is determined under the Code on Wages. A key threshold governs who qualifies for mandatory bonuses: employees earning up to ₹21,000 per month may be eligible, while those earning more are not entitled to mandatory bonuses.
- Eligibility threshold: monthly wages not exceeding ₹21,000.
- Employees earning above ₹21,000 per month are not covered by the mandatory bonus provision.
- Details on bonus calculation and payment deadlines are outlined in the ministry’s notifications.
Implications for workers and employers
Businesses should review payroll practices to align with the clarified rules, ensuring that any statutory bonus obligations are applied only to eligible staff and timelines specified in the Code on Wages notices.
