Statutory bonus: credited within 8 months of the year end
Under the Code on Wages, 2019 the annual bonus is paid by crediting it to your bank account within eight months from the close of the accounting year (s. 39). For most companies the year ends on 31 March, so the bonus for 2025-26 is due by 30 November 2026.
What the Code says
| Rule | Section |
|---|---|
| Minimum bonus: 8.33% of wages earned or ₹100, whichever is higher — even if there is no allocable surplus | s. 26(1) |
| You need at least 30 days of work in the accounting year | s. 26(1) |
| With a larger allocable surplus: in proportion to wages, up to 20% | s. 26(3) |
| Paid by bank credit within 8 months of the year end | s. 39(1) |
Example
Illustrative example only. Wages counted for bonus in April 2025 – March 2026: ₹1,20,000.
| Rate | How | Bonus |
|---|---|---|
| Minimum 8.33% | ₹1,20,000 × 8.33% | ₹9,996 |
| Maximum 20% | ₹1,20,000 × 20% | ₹24,000 |
⚠️ Note. If your monthly wage is above the ceiling notified for the calculation, the bonus is worked out as if your wage were that ceiling or the minimum wage, whichever is higher (s. 26(2)). The Code also lets the government extend the eight months on the employer’s application (s. 39, proviso) — so check your payslip first, then ask HR in writing.
Checklist
- ☐ Your company’s accounting year end (usually 31 March)
- ☐ Days worked in the year — at least 30
- ☐ Wages counted: basic + DA
- ☐ Rate declared by the company (8.33% to 20%)
- ☐ Bank credit by 30 November 2026 for a 31 March year end
The worksheet is ready
Enter your wages, months worked and the declared rate — you see the minimum, the maximum and what you can expect.
Legal basis: Code on Wages, 2019 (Act 29 of 2019), s. 26 (eligibility, 8.33%–20%) and s. 39 (eight months) — indiacode.nic.in. Checked 01.11.2026. Not legal advice.