On August 25, 2026, the Ministry of Labour and Employment issued two notifications under the Code on Wages, 2019 (‘Wage Code’), in relation to statutory bonus. By way of the first Notification, the Central Government has prescribed the eligibility ceiling for statutory bonus entitlement, which continues to remain INR 21,000 (approx. USD 220) per month as was prescribed under the erstwhile Payment of Bonus Act, 1965. Accordingly, every employee drawing wages not exceeding INR 21,000 (approx. USD 220) per month is entitled to be paid bonus in accordance with the Wage Code. By way of the second Notification, the Central Government has set the computation ceiling for determining the quantum of statutory bonus. It states that for the purpose of calculation of the statutory bonus, where the wages of an employee who is eligible for bonus exceed INR 7,000 (approx. USD 75) per month, the bonus payable to such employee must be calculated as if the employee’s wages were INR 7,000 (approx. USD 75) per month or the minimum wage fixed by the Central Government, whichever is higher. Both notifications are deemed to have come into force on November 21, 2025.