The Delhi Government has directed all its departments, autonomous bodies and Public Sector Undertakings (PSUs) to ensure payment of statutory bonuses to eligible outsourced employees for the accounting year 2025-26 by November 30, 2026. In an advisory issued on Monday, the Labour Department reminded Government agencies that contractors are legally obligated to pay the bonus and warned that the principal employer would also be held liable if contractors default.
The advisory, issued by the Office of the Secretary-cum-Commissioner (Labour), Government of NCT of Delhi, applies to outsourced workers and employees engaged through contractors in various Government departments, autonomous bodies and PSUs. It states that a large number of such workers are engaged across these establishments and are entitled to statutory bonuses under the Code on Wages, 2019.
According to the advisory, employees drawing monthly wages of up to Rs 21,000 and having worked for at least 30 days during the accounting year are eligible for statutory bonus. The minimum bonus payable is 8.33 per cent of wages or Rs 100, whichever is higher, while the maximum is capped at 20 per cent. For calculating the bonus, the wage ceiling is Rs 7,000 per month or the applicable minimum wage, whichever is higher. The advisory clarifies that the Rs 21,000 monthly wage limit for eligibility continues to apply in the National Capital.
The Labour Department has specified that contractors, being the employers under the Code, must disburse the bonus within eight months of the conclusion of the accounting year. For 2025-26, the deadline therefore falls on November 30, 2026.
The advisory further states that failure to pay the statutory bonus could attract penalties and recovery proceedings under the Code on Wages, 2019. It also places responsibility on the principal employer under the Occupational Safety, Health and Working Conditions Code, 2020, if the contractor fails to make the payment.
The department has urged all principal employers to ensure that contractors fulfil their statutory obligations and pay the bonus to every eligible outsourced worker for the accounting year. However, payment of any bonus over and above the Rs 21,000 wage eligibility ceiling has been left to the discretion of the employer.
The directive comes against the backdrop of the implementation of the Code on Wages, 2019, which came into force on November 21, 2025, replacing the Payment of Bonus Act, 1965. The new framework retains the provision for minimum and maximum annual bonus payments and provides for eligibility based on a wage ceiling notified by the appropriate government.
Under Section 26 of the Code, an employee who has worked for at least 30 days in an accounting year is entitled to a minimum bonus, subject to the prescribed wage eligibility limit. The provision also allows for a higher bonus depending on the allocable surplus of the establishment, subject to the statutory maximum.
The advisory seeks to ensure that outsourced employees working in government establishments are not deprived of statutory benefits because their services are routed through private contractors. It also places the responsibility on government departments and other principal employers to monitor compliance by the agencies engaged by them. The Labour Department has asked the concerned departments and organisations to ensure that all eligible workers receive.