Festive Boost: Delhi Mandates Statutory Bonus for Outsourced Workers
Delhi Labour Dept orders government bodies to ensure outsourced workers receive statutory bonuses before the festive season under the Code on Wages.
In a significant move to support the workforce ahead of the festive season, the Labour Department of the Government of National Capital Territory of Delhi (GNCTD) has issued a stern advisory regarding the payment of statutory bonus for outsourced workers. The directive ensures that those working through contractors in government setups receive their rightful dues for the 2025-26 accounting year.
Who is Eligible for the Bonus?
The advisory, issued by the Office of the Secretary-cum-Commissioner (Labour), clearly outlines the criteria for eligibility. Under the new guidelines, outsourced employees are eligible for the bonus if they meet the following conditions:
- They must be drawing monthly wages of up to ₹21,000.
- They must have completed a minimum of 30 days of work during the accounting year.
While the mandatory ceiling is set at ₹21,000, the department noted that any bonus payment to workers earning above this limit remains at the discretion of the employer.
Understanding the Payment Structure
The bonus calculations are governed by specific minimum and maximum thresholds to ensure fair compensation. According to the GNCTD:
- Minimum Bonus: 8.33% of wages or ₹100, whichever is higher.
- Maximum Bonus: Up to 20% of wages.
- Calculation Ceiling: The bonus is calculated based on wages subject to a ceiling of ₹7,000 or the prevailing minimum wages, whichever is higher.
Shift to the Code on Wages, 2019
This directive marks a transition in labor law application. With the Code on Wages, 2019 coming into effect on November 21, 2025, the previous Payment of Bonus Act, 1965, has been repealed. The new Code now serves as the legal framework for these disbursements.
Strict Deadlines and Penalties
The Labour Department has set a clear timeline for contractors to ensure workers are not left waiting. Statutory bonuses must be disbursed within eight months of the close of the accounting year, making the final deadline November 30, 2026.
The government has warned that any contractor defaulting on these payments will face strict penalties and recovery proceedings through claims filed under the Code on Wages, 2019.
Liability of Principal Employers
The advisory, issued by Additional Labour Commissioner U. K. Sinha, sends a strong message to government departments, autonomous bodies, and Public Sector Undertakings (PSUs). Under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, the Principal Employer will be held legally liable if a contractor fails to pay the statutory bonus to the workers.
Consequently, all Principal Employers have been urged to vigilantly monitor their contractors to ensure that every eligible outsourced worker receives their bonus in time for the upcoming festivities.