Employers are reminded of the statutory obligation under Section 19 of the Payment of Bonus Act, 1965, to disburse bonus for the accounting year ending 31 March 2025 within eight months of the close of that accounting year — that is, on or before 30 November 2025, unless an extension has been separately granted by the appropriate government on application under Section 21.

Eligibility for statutory bonus continues to apply to employees drawing wages (basic plus dearness allowance) of up to ₹21,000 per month who have worked at least 30 working days in the accounting year, while the bonus itself is calculated by capping the eligible wage at ₹7,000 per month or the applicable state minimum wage, whichever is higher, for employees drawing between ₹7,000/minimum wage and ₹21,000.

The minimum bonus payable remains 8.33% of the calculated wage, and the maximum is capped at 20%, with the actual percentage within this range determined based on the 'available surplus' and 'allocable surplus' computed under the Second and Third Schedules to the Act with reference to the employer's audited accounts for the relevant year.

Employers proposing to pay bonus at a rate other than the statutory minimum of 8.33% should ensure that the allocable surplus computation is documented and retained, since bonus disputes raised before the Labour Commissioner frequently turn on the adequacy of this computation rather than on eligibility itself.

Where an establishment is unable to meet the 30 November deadline for genuine reasons such as pending finalisation of audited accounts, an application for extension must be filed with the appropriate government before the expiry of the eight-month period — simply delaying disbursal without an approved extension exposes the employer to a claim under Section 22 and potential prosecution under Section 28.

Payroll and finance teams should reconcile the eligible employee list against the ₹21,000 wage ceiling as it stood through FY 2024-25 (noting that employees crossing the ceiling mid-year retain eligibility for the portion of the year they were within it, as per settled interpretation), and finalise the bonus register (Form C) well ahead of the payment date.

Given the interplay between this deadline and the Diwali/festive season payroll cycle for many organisations, employers should lock the bonus computation methodology and approvals at least two to three weeks ahead of 30 November 2025 to avoid last-minute disbursal errors and to allow time for statutory register updation.