Bihar: employees earning up to ₹21,000 a month eligible for bonus under the Code on Wages, from 21 November 2025
TaxByKK · Compliance News · taxbykk.com30 Oct 2026
In short
The Government of Bihar has determined, for the Code on Wages, 2019, that every employee drawing wages of not more than ₹21,000 a month shall be paid bonus as specified in section 26 of the Code. The notification, S.O. 241 dated 30 October 2026, is deemed to have come into force on 21 November 2025, so it reaches back almost a year.
- Authority
- Government of Bihar (Labour Resources Department)
- Notification
- S.O. 241 dated 30 October 2026, No. 01/Code on Wages-10-05/2026 (English text published as S.O. 242)
- Type
- Notification
- Wage limit
- Not exceeding ₹21,000 a month
- Effective from
- 21 November 2025 (deemed)
- Law
- Section 26(1) of the Code on Wages, 2019
What changed
| Item | Before | Now |
|---|---|---|
| Employees eligible for bonus under section 26 of the Code on Wages, Bihar | Wage limit not stated in this notification | Every employee drawing wages up to ₹21,000 a month |
The notification sets only the wage limit for eligibility. It does not state the bonus rate, the wage ceiling used for calculating bonus, or how bonus already paid for the period from 21 November 2025 is to be adjusted. Section 26 of the Code and its rules govern those points.
Who it applies to
- Employers with establishments in Bihar
- Employees in Bihar earning up to ₹21,000 a month
- Payroll teams, CAs and labour law advisers
What to do
- Check which Bihar employees draw wages up to ₹21,000 a month and treat them as eligible for bonus under section 26.
- Review bonus for the accounting year that includes 21 November 2025, as the notification applies from that date.
- Update payroll policies and appointment letters for Bihar locations.
Reference
Government of Bihar notification S.O. 241, 30 October 2026, No. 01/Code on Wages-10-05/2026/L.R., issued under section 26(1) of the Code on Wages, 2019 (English translation S.O. 242).
Read the official PDF: Bihar notificationWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
Who is eligible for bonus in Bihar under the Code on Wages?
Every employee drawing wages not exceeding ₹21,000 a month.
From when does the Bihar notification apply?
It is deemed to have come into force on 21 November 2025.
Does the notification set the bonus rate?
No. It only sets the wage limit for eligibility; the rate follows section 26 of the Code.