# Minimum Wages, Bonus & Gratuity Compliance

> Under the Code on Wages, every employee must be paid at least the minimum wage notified by the state (which can't be below the central floor wage), wages must be paid on time, and full-and-final dues must be paid within two working days of resignation or termination. Statutory bonus of 8.33% to 20% applies to employees earning up to the notified wage limit, and gratuity under the Code on Social Security is payable after five years (one year for fixed-term staff).

Practice: Labour Law & HR Compliance — https://www.industax.com/services/labour-hr/

Minimum wages are revised twice a year in many states through variable dearness allowance, so a structure that was compliant last year can fall short now. We check wages against current notifications by state and skill category.

We compute bonus and gratuity provisions, design the full-and-final settlement process to meet the two-day rule, and maintain wage registers.

## Key facts

| Item | Detail |
| --- | --- |
| Minimum wage | State notification, not below the floor wage |
| F&F settlement | Within 2 working days of exit |
| Bonus | 8.33% to 20% for eligible employees |
| Gratuity | After 5 years (1 year for fixed-term) |
| Wage periods | Not longer than a month |

## Who needs this

- Employers with blue-collar or entry-level staff
- Companies across many states
- HR teams handling exits

## What's included

- Minimum wage audit
- Bonus and gratuity computation
- F&F process
- Wage registers

## Documents

- Salary register by state
- Employee categories
- Exit cases

## Process

1. **Check** — Wages against state notifications.
2. **Compute** — Bonus and gratuity liabilities.
3. **Settle** — Timely F&F payments.

## FAQs

### Who is eligible for statutory bonus?

Employees drawing wages up to the limit notified under the Code on Wages who have worked at least 30 days in the year, in establishments covered by the bonus provisions.

### Is the 2-day full-and-final rule mandatory?

Yes. The Code on Wages requires wages due on removal, dismissal, retrenchment or resignation to be paid within two working days.

### Do minimum wages apply to office staff?

Yes. Under the Code on Wages, minimum wages apply to all employees, not just scheduled employments as earlier.

## Official sources

- Ministry of Labour & Employment — Labour Codes: https://labour.gov.in/

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Canonical page: https://www.industax.com/services/labour-hr/minimum-wages-bonus-compliance
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.