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Delhi Labour Dept mandates statutory bonus for outsourced workers under Code on Wages ahead of festive season

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New Delhi | November 3, 2026 1:11:20 AM IST
The Labour Department of the Government of National Capital Territory of Delhi (GNCTD) on Monday issued an advisory directing all government departments, autonomous bodies, and Public Sector Undertakings (PSUs) to ensure the payment of statutory bonuses to outsourced workers for the accounting year 2025-26 ahead of the forthcoming festive season.

According to the advisory issued by the Office of the Secretary-cum-Commissioner (Labour), contractors are mandated to disburse the statutory bonus within eight months of the close of the accounting year, setting the deadline as November 30, 2026.

The directive noted that with the Code on Wages, 2019 coming into force on November 21, 2025, the earlier Payment of Bonus Act, 1965 stands repealed.

Under the provisions of the new Code, outsourced workers drawing wages up to 21,000 per month who have completed at least 30 days of work are eligible to receive the statutory bonus.

"Bonus is payable at a minimum of 8.33% or 100, whichever is higher, and a maximum of 20%, calculated on wages subject to a ceiling of 7,000 or the minimum wages, whichever is higher. The wage ceiling of 21,000 is still applicable in GNCTD," the advisory stated.

The department warned that any default by contractors in paying the statutory dues would attract penalties and recovery proceedings through claims under the Code on Wages, 2019.

The advisory further cautioned principal employers that under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, the Principal Employer will be held liable if a contractor fails to pay the statutory bonus.

"All Principal Employers are urged to ensure that their Contractors pay statutory Bonus to all eligible outsourced workers/employees in respect of Accounting Year 2025-26 during the forthcoming festive season. Payment of Bonus above the wage ceiling of 21,000 is at the employer's discretion," the advisory issued by Additional Labour Commissioner U. K. Sinha read.(ANI)

 
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