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An worker whose basic wage together with DA or wage exceeds ₹21,000 per thirty days isn’t eligible for the obligatory statutory bonus underneath the existing code. The Code clarifies that statutory bonus shall be paid to each employee drawing wages not exceeding such amount per mensem, as determined by notification by the appropriate Authorities. With effect from 21 November 2025, statutory bonus is ruled by the Code on Wages, changing the erstwhile Cost of Bonus Act, 1965. The bonus of the Fee Act doesn’t regulate the CTC construction, so employers might embrace a statutory bonus within CTC or hold it separate. The act defines applicability criteria, provides for the calculation of bonuses, lists exemptions, and units out a set of provisions.

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