Deadlines · Code on Wages
Bonus payment
- After the accounting year closes: within 8 months
- Employer
- Set by the Code itself; the Central Rules add nothing on this
What to do
Pay the bonus due to each eligible employee by crediting it to the employee’s bank account s. 39(1).
Who it applies to
Establishments in which twenty or more persons are employed, or were employed on any day of the accounting year s. 41(2), for employees within the notified wage ceiling s. 26(1), which the Central Government has set at ₹21,000 a month S.O. 4711(E).
In the checklist: Bonus (Code on Wages Chapter IV).
When
Within eight months from the close of the accounting year s. 39(1).
How
On your application, the appropriate Government may extend the eight months, but never beyond two years in total s. 39(1), proviso.
If a bonus dispute is pending, pay within one month of the award becoming enforceable or the settlement coming into operation s. 39(2).