Statutory bonus sheet for CA firms: FY 2025-26 bonus under the Code on Wages, due by 30 November 2026, and the 21 November tax-return date
What you get: a ready-to-copy Google Sheet layout for CA firms with two tabs. "Clients" has one row per employer client and tells you, by formula, whether the statutory bonus chapter of the Code on Wages, 2019 covers it for FY 2025-26, the date to pay by (the 30 November 2026 statutory limit, or the earlier income-tax return date so the bonus is deductible this year), and the status today. "Employees" has one row per employee and works out who is eligible, the bonus base, the bonus at the rate you enter (8.33% to 20%), less any Diwali or customary bonus already paid. Plus a plan for 23 October to 30 November and a client message. Free, no sign-up.
Short answer (checked 23 Oct 2026): the Code on Wages, 2019 came into force on 21 November 2025 (S.O. 5322(E), sections 1 to 41 and 69) and replaced the Payment of Bonus Act, 1965 (section 69). Under section 39(1) of the Code, bonus must be paid by credit to the employee's bank account within eight months from the close of the accounting year. The accounting year is the year starting 1 April (section 2(a)), so bonus for FY 2025-26 (year ended Tuesday 31 March 2026) is due by Monday 30 November 2026, unless the government has extended the period on the employer's application (total extension never more than two years). For establishments where the Central Government is the appropriate Government, the Ministry of Labour fixed the eligibility ceiling at ₹21,000 a month (S.O. 4711(E)) and the calculation ceiling at ₹7,000 a month or the Central minimum wage, whichever is higher (S.O. 4710(E)), both dated 25 August 2026 and deemed in force from 21 November 2025. For all other establishments the State Government is the appropriate Government (section 2(d)), so use your State's notification. This is a starting point, not legal or tax advice.
Why CA firms should own this date
- The tax side: section 43B(c) of the Income-tax Act, 1961 allows bonus to employees (section 36(1)(ii)) only in the year it is actually paid, unless it is paid on or before the client's section 139(1) due date for that year and the evidence of payment is furnished with the return (section 43B, Income Tax Department). For audit cases that due date for AY 2026-27 is 21 November 2026 (CBDT Circular No. 07/2026), nine days before the labour-law limit. A client who pays on 30 November is compliant under the Code but loses the FY 2025-26 deduction; it moves to the year of payment.
- The provision in the accounts: bonus provided for FY 2025-26 and not paid shows up in your tax audit and in the return's section 43B schedule. One sheet keeps the provision, the payment date and the return date together.
- The penalty side: under section 54(1)(a) of the Code, an employer who pays an employee less than the amount due can be fined up to ₹50,000; a repeat within five years can mean imprisonment up to three months or a fine up to ₹1 lakh, or both (section 54(1)(b)).
Who is covered (section 41 and section 26)
| Test | Rule in the Code |
|---|---|
| Size | The chapter applies to an establishment in which 20 or more persons are employed or were employed on any day during the accounting year (section 41(2)). |
| Excluded employers | Section 41(1) lists exclusions, including the LIC, RBI, Indian Red Cross and similar institutions, universities and other educational institutions, and institutions including hospitals, chambers of commerce and social welfare institutions established not for profit; also establishments under a government department or local authority, and any establishment the appropriate Government exempts by notification. |
| New establishments | For the first five accounting years after the employer first sells goods or renders services, bonus is payable only for a year in which the employer derives profit from that establishment (section 26(6)). |
| Employee | Drawing wages not above the notified ceiling and has put in at least 30 days' work in the accounting year (section 26(1)). Apprentices under the Apprentices Act, 1961 are not "employees" (section 2(k)). |
| Days counted as worked | Lay-off under an agreement or standing orders, leave with wages, temporary disablement from an accident at work, and paid maternity leave (section 28). |
| Disqualified | An employee dismissed for fraud; riotous or violent behaviour on the premises; theft, misappropriation or sabotage of the establishment's property; or conviction for sexual harassment (section 29). |
| Amount | Minimum 8.33% of wages earned or ₹100, whichever is higher, whether or not there is allocable surplus (section 26(1)); up to a maximum of 20% where allocable surplus allows (section 26(3)), and any productivity bonus by agreement must keep the total within 20% (section 26(5)). |
| Already paid? | Puja or other customary bonus, or part of the bonus paid in advance, in the same accounting year can be deducted from the bonus due (section 37). Loss caused by the employee's proven misconduct in that year can also be deducted (section 38). |
"Wages" changed. Under section 2(y) wages are basic pay, dearness allowance and retaining allowance, and exclude items such as HRA, conveyance, employer PF contribution, overtime and commission. But if the excluded items (clauses (a) to (i)) are more than one-half of total remuneration, the excess over one-half is added back into wages. So a salary structure with a small basic can now produce a larger bonus base than last year's payroll formula. Run the add-back before you trust the payroll figure.
Tab "Clients": one row per employer client
| Column | What goes in it |
|---|---|
| A Client | Name |
| B Appropriate Government | Central or State (section 2(d): railways, mines, oil fields, major ports, air transport, telecom, banking and insurance companies, central PSUs and their contractors are Central; the rest are State) |
| C Most persons employed on any day in FY 2025-26 | Number, from the attendance register (count contract staff with care: a contractor is also an "employer" under section 2(l)) |
| D Excluded under section 41(1)? | Yes / No |
| E New establishment with no profit this year (section 26(6))? | Yes / No |
| F Eligibility ceiling (₹ per month) | 21000 for Central-sphere; your State's notified figure otherwise (leave blank until you have it) |
| G Calculation ceiling (₹ per month) | 7000 for Central-sphere (or the Central minimum wage if higher, per employee); State figure otherwise |
| H Income-tax return: audit case? | Yes / No |
| I 139(1) due date (AY 2026-27) | 21 Nov 2026 for audit cases (Circular 07/2026); otherwise the client's own date |
| J Return filed on | Date or blank |
| K Total bonus (₹) | =SUMIF(Employees!A:A,A2,Employees!L:L) |
| L Bonus credited to bank on | Date (the last credit, if paid in parts) |
| M Covered? | Formula below |
| N Pay by | Formula below |
| O Status today | Formula below |
M2: =IF(OR(D2="Yes",E2="Yes"),"Not covered",IF(C2>=20,"Covered","Below 20: not covered")) N2: =IF(M2<>"Covered","",IF(AND(J2="",I2<>"",I2<DATE(2026,11,30),TODAY()<=I2),MIN(I2,DATE(2026,11,30)),DATE(2026,11,30))) O2: =IF(M2<>"Covered",M2, IF(F2="","Ceiling not known: get the State notification", IF(L2<>"",IF(L2>DATE(2026,11,30),"Paid late: check extension order",IF(OR(AND(I2<>"",L2>I2),AND(J2<>"",L2>J2)),"Paid on time; 43B deduction moves to FY "&IF(L2<=DATE(2027,3,31),"2026-27","of payment"),"Paid: keep bank proof with the return")), IF(TODAY()>DATE(2026,11,30),"OVERDUE: pay now or show the extension order", IF(AND(J2="",TODAY()<=I2),"Pay before filing the return, by "&TEXT(N2,"d mmm"),"Pay by 30 Nov")))))
Column O also flags a bonus paid after the return was filed: the evidence could not go with that return. Sort by O, then N. Every "Pay before filing the return" row is an audit-case client whose return you are still preparing: if the bonus is paid before you file, the evidence can go with the return and the deduction stays in FY 2025-26.
Tab "Employees": one row per employee of each covered client
| Column | What goes in it |
|---|---|
| A Client | Same name as on the Clients tab |
| B Employee | Name or code |
| C Highest monthly wages in FY 2025-26 (₹) | Wages as defined in section 2(y), after the one-half add-back |
| D Days worked (section 28 rules) | Number |
| E Disqualified under section 29? | Yes / No |
| F Wages earned in the year (₹) | Total, section 2(y) basis |
| G Months in which wages were earned | 1 to 12 |
| H Calculation ceiling for this employee (₹ per month) | =MAX(VLOOKUP(A2,Clients!A:G,7,FALSE), minimum wage for this employee if higher) |
| I Bonus rate | 8.33% minimum, up to 20% (from the client's allocable surplus working) |
| J Customary / advance bonus already paid this year (₹) | Section 37 |
| K Eligible? | Formula below |
| L Bonus still to pay (₹) | Formula below |
K2: =IF(E2="Yes","No: disqualified",IF(D2<30,"No: under 30 days",IF(C2>VLOOKUP(A2,Clients!A:F,6,FALSE),"No: above ceiling","Yes"))) L2: =IF(K2<>"Yes",0,MAX(0,ROUND(MAX(MIN(F2,H2*G2)*I2,100)-J2,0)))
MIN(F2, H2×G2) caps the bonus base at the calculation ceiling for each month worked (section 26(2)). If wages swung above and below the ceiling during the year, do the cap month by month instead. The ₹100 floor is the section 26(1) minimum; section 27 reduces the minimum proportionately for an employee who did not work all the working days, so check part-year rows by hand.
Three made-up example rows (not real people), Central-sphere client, 8.33%
| Employee | C Highest monthly wages | D Days | F Wages earned | G Months | J Already paid | K | L |
|---|---|---|---|---|---|---|---|
| Example Operator | 18,000 | 290 | 2,16,000 | 12 | 2,000 | Yes | 4,997 (7,000 × 12 × 8.33% = 6,997, less 2,000) |
| Sample Clerk | 24,000 | 300 | 2,88,000 | 12 | 0 | No: above ceiling | 0 |
| Demo Helper (joined in Feb) | 12,000 | 25 | 12,000 | 1 | 0 | No: under 30 days | 0 |
FY 2025-26 straddles 21 November 2025
The Payment of Bonus Act, 1965 applied until 20 November 2025 and the Code from 21 November 2025; the two Central notifications are deemed in force from that date. The eight-month limit gives the same 30 November 2026 date under the Code. How to split the year (for example, which definition of wages applies to April to November 2025) is a judgement for the client's labour adviser: the sheet works for either answer if you fill column F on the basis you settle on, and keep a note of it.
Plan to 30 November
| When | What |
|---|---|
| Fri 23 – Sat 31 Oct | Fill the Clients tab for every employer client. Ask payroll for headcount by day, wage registers and any Diwali or customary bonus already paid. Send the client message below. |
| Mon 2 – Fri 13 Nov | Fill the Employees tab, run the section 2(y) one-half add-back, agree the rate (8.33% or more) with each client, and get the total approved. |
| By Fri 20 Nov | Audit-case clients: bonus credited to bank accounts and proof on file before you file the return due Sat 21 Nov. |
| By Fri 27 Nov | Everyone else: target date for bank credits, leaving Monday 30 November as a buffer only. |
| Mon 30 Nov | Statutory limit under section 39(1). Any client who cannot pay must already have applied for an extension. |
Client message
"Statutory bonus for FY 2025-26 under the Code on Wages, 2019 must be credited to employees' bank accounts by 30 November 2026. If it is paid before we file your income-tax return (due [date]), the expense stays deductible for FY 2025-26; if paid later, it moves to the year of payment. Please send by [date]: headcount, wage registers for April 2025 to March 2026, and any Diwali or advance bonus already paid, so we can work out who is eligible and the amount."
Notes
- Check whether your client's State has notified its own bonus ceilings under section 26 before you fill columns F and G; we do not state any State figure here.
- Where a bonus dispute is pending, section 39(2) gives one month from the award or settlement, but the employer must still pay 8.33% within the eight months.
- Allocable surplus is 67% of available surplus (60% for a banking company), section 31(1); the gross-profit method is to be prescribed by the Central Government (section 32).
- The sheet holds employee pay data: share it only inside your firm and with the client.
Related guides
- ITR audit cases: 21 Nov 2026 chase list
- November 2026 due-date chase list
- Diwali bonus and gifts: tax rules for 2026-27
- EPFO ECR monthly due date
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