Скачать или смотреть Has statutory bonus eligibility shifted from Gross Salary to Basic + DA?

A common question after the introduction of the Code on Wages, 2019 is whether statutory bonus eligibility has shifted from Gross Salary to Basic + DA. This issue has created significant confusion among employers, HR professionals, and employees.

Under the Payment of Bonus Act, 1965, eligibility for statutory bonus was determined based on salary or wages up to ₹21,000 per month, and in practice, many employers considered Gross Salary for this purpose.

The Code on Wages, 2019 changes this framework. The Code adopts a uniform definition of “wages”, which broadly includes Basic Pay and Dearness Allowance (DA) while limiting other allowances to a maximum of 50% of total remuneration. Consequently, bonus eligibility and calculation are now linked to “wages” as defined under the Code, and not to Gross Salary.

However, it is important to note that:

The ₹21,000 eligibility ceiling for statutory bonus continues, unless revised by notification

The basis of eligibility is “wages” (i.e., Basic + DA) as per the Code’s definition

Actual applicability depends on notification and enforcement of the Code on Wages and corresponding rules

This explanation clarifies:

Whether statutory bonus eligibility has legally shifted to Basic + DA

How the definition of wages affects bonus eligibility and calculation

Key compliance implications for employers, payroll teams, and HR professionals

Common misconceptions arising from CTC restructuring under the new labour codes

Understanding this shift is essential to ensure accurate bonus eligibility determination, lawful wage structuring, and avoidance of statutory non-compliance.