Under Section 26 of the Code on Wages, 2019, every eligible employee is entitled to an annual minimum bonus calculated at the rate of eight and one-third per cent of wages earned, or one hundred rupees, whichever is higher, irrespective of whether the employer has any allocable surplus; however, where the allocable surplus exceeds this minimum bonus, the employer must pay bonus in proportion to wages earned, subject to a maximum of: 

Section 26(1) of the Code on Wages, 2019 entitles every employee drawing wages not exceeding the amount notified by the appropriate Government, who has worked at least thirty days in an accounting year, to an annual minimum bonus calculated at eight and one-third per cent of wages earned, or one hundred rupees, whichever is higher, irrespective of whether the employer has any allocable surplus. Section 26(3) provides that where the allocable surplus for that accounting year exceeds this minimum bonus, the employer must instead pay bonus in proportion to wages earned during the year, subject to a maximum of twenty per cent of such wages. This dual structure - a guaranteed floor and a surplus-linked ceiling - consolidates the corresponding provisions of the erstwhile Payment of Bonus Act, 1965, into the unified wage code framework.