Statutory Bonus in Telangana 2026: #3 Nationally After June MW Overhaul — Rates, Eligibility & IT Guide
#3 Nationally
June 2026 Overhaul
77 Trades → 1 Table
₹1,000 Zone Steps
IT Sector Guide
Quick Facts: Telangana Statutory Bonus at a Glance
Min Bonus
8.33%
Of eligible wages
Max Bonus
20%
Capped at 20%
Eligibility Ceiling
≤₹21,000/mo
Basic + DA
Zone I Unskilled
₹16,000/mo
June 2026 MW
Zone I Unskilled Bonus
₹15,994/yr
8.33% × ₹16,000 × 12
Zone I HS MW
₹20,000/mo
At ceiling
Zone I HS Bonus
₹19,992/yr
₹1K below ceiling
₹7,000 Underpayment
₹8,998/yr
Gap per Unskilled Zone I
Zone Step
₹1,000/mo
₹999/yr per level
All Eligible
Unskilled–HS
But HS borderline
Trades Unified
77 → 1 Table
June 2026 simplification
Payment Deadline
Nov 30, 2026
For FY 2025-26
Rank Nationally
#3
After Karnataka, Delhi
TG vs AP
+₹3,351/yr
TG ₹15,994 > AP ₹12,643
Penalty
6 Months Jail
And/or ₹1,000 fine
Telangana's Complete 3-Zone × 4-Skill Bonus Tables
All 77 trades now unified into these 12 rates per percentage (8.33% shown, 20% follows). Zone steps = ₹1,000/month.
8.33% Minimum Bonus — June 2026 MW Rates (FY 2026-27)
| Skill Level | Zone I (₹/yr) | Zone II (₹/yr) | Zone III (₹/yr) |
|---|---|---|---|
| Unskilled | ₹15,994 | ₹14,994 | ₹13,994 |
| Semi-Skilled | ₹16,994 | ₹15,994 | ₹14,994 |
| Skilled | ₹18,493 | ₹17,494 | ₹16,494 |
| Highly Skilled | ₹19,992 | ₹18,994 | ₹17,994 |
20% Maximum Bonus — June 2026 MW Rates
| Skill Level | Zone I (₹/yr) | Zone II (₹/yr) | Zone III (₹/yr) |
|---|---|---|---|
| Unskilled | ₹38,397 | ₹35,998 | ₹33,597 |
| Semi-Skilled | ₹40,797 | ₹38,397 | ₹35,998 |
| Skilled | ₹44,397 | ₹41,997 | ₹39,597 |
| Highly Skilled | ₹47,997 | ₹45,597 | ₹43,197 |
Zone Step Structure — ₹1,000/Month = ₹999/Year
| Skill | Zone I → Zone II | Zone II → Zone III |
|---|---|---|
| Unskilled | ₹1,000/mo = ₹999/yr at 8.33% | ₹1,000/mo = ₹999/yr at 8.33% |
| Semi-Skilled | ₹1,000/mo = ₹999/yr at 8.33% | ₹1,000/mo = ₹999/yr at 8.33% |
| Skilled | ₹1,000/mo = ₹999/yr at 8.33% | ₹1,000/mo = ₹999/yr at 8.33% |
| Highly Skilled | ₹1,000/mo = ₹999/yr at 8.33% | ₹1,000/mo = ₹999/yr at 8.33% |
₹7,000 Underpayment Trap — Why Using Flat ₹7,000 Is Illegal
| If You Use | 8.33% Bonus/Year (₹) | vs Correct TG MW | Annual Shortfall Per Employee (₹) |
|---|---|---|---|
| ₹7,000 flat (WRONG) | ₹5,996 | — | — |
| ₹16,000 MW (CORRECT — Zone I Unskilled) | ₹15,994 | +₹8,998 | ₹8,998/yr per worker |
Eligibility — Highly Skilled Category at the ₹21,000 Ceiling
All skill levels are eligible, but Zone I HS is borderline.
| Skill Level | Zone I MW | Bonus Eligibility | Risk |
|---|---|---|---|
| Unskilled | ₹16,000/mo | Fully eligible | None — well below ₹21,000 |
| Semi-Skilled | ₹17,000/mo | Fully eligible | None — well below ₹21,000 |
| Skilled | ₹18,500/mo | Fully eligible | None — below ₹21,000 |
| Highly Skilled | ₹20,000/mo | Technically eligible | Amber — ₹1K margin |
General Eligibility Criteria
| Criteria | Requirement |
|---|---|
| Salary/wage ceiling | Basic + DA ≤ ₹21,000/month |
| Minimum service | 30 working days in the accounting year |
| Employee type | Any person employed on salary/wage (NOT an apprentice) |
| Permanent/contract | Both permanent and contract employees eligible |
June 2026 Overhaul — Before & After
Telangana unified 77 trades into one bonus table, with MW increases of 25.5% for unskilled workers.
| Aspect | Pre-June 2026 (FY 2025-26) | June 2026 Onward (FY 2026-27) | Change |
|---|---|---|---|
| Trades covered | 77 trades with separate MW rates | 77 trades unified into 1 table | Massive simplification |
| Bonus calculations | Hundreds of trade-specific rates | 12 zone × skill combos (3×4) | Easier compliance |
| Unskilled Zone I MW | ~₹12,750/mo | ₹16,000/mo | +₹3,250 (+25.5%) |
| Unskilled Zone I Bonus | ~₹12,750 × 8.33% = ₹12,750/yr | ₹16,000 × 8.33% = ₹15,994/yr | +₹3,244 (+25.5%) |
| All skill levels | Trade-dependent | Consistent across trades | Predictability |
Why This Matters for Payroll
- Pre-overhaul: Mason, hotel worker, factory worker each had different MWs and bonus rates
- Post-overhaul: All three in the same zone and skill level get identical bonus
- Cost impact: Unskilled workers get 25.5% higher bonus starting FY 2026-27
- Deadline: June 2026 rates apply to FY 2026-27 bonus (payable Nov 2027)
77 Trades, One Bonus Table — The Simplification
Before June 2026, Telangana maintained separate minimum wage rates for 77 different trades. Now all use the same bonus structure.
| Occupation Category | Pre-June MW | June 2026 MW (Unified) |
|---|---|---|
| Mason, Carpenter, Plumber | Trade-specific | Now Skilled: ₹18,500/mo |
| Hotel worker, Waiter, Chef | Trade-specific | Now Semi-Skilled: ₹17,000/mo (or Skilled) |
| Factory worker, operator | Trade-specific | Now Semi-Skilled or Skilled (based on role) |
| Security guard, housekeeping | Trade-specific | Now Unskilled or Semi-Skilled: ₹16,000–₹17,000 |
| IT support, database admin | Trade-specific | Now Skilled or HS: ₹18,500–₹20,000 |
Telangana vs Andhra Pradesh — 26% Bonus Divergence
Same 1987 Bonus Act heritage, but dramatically different minimum wages since 2014 separation.
| Metric | Telangana (Zone I) | Andhra Pradesh (Zone I) | Difference |
|---|---|---|---|
| Minimum Wage (Unskilled) | ₹16,000/mo | ~₹13,000/mo | TG +23% higher |
| 8.33% Bonus (Unskilled) | ₹15,994/yr | ~₹12,643/yr | TG +₹3,351 (+26%) |
| Rank in India | #3 nationally | #10 (lower middle) | TG significantly ahead |
Historical Context
Both TG and AP follow the Payment of Bonus Act, 1965. However, since TG's formation in 2014, the two states have diverged sharply in minimum wage policy. Telangana has consistently set higher MWs, driving higher bonus obligations. A company operating in both states must track two separate bonus structures.
HITEC City & IT Sector — Bonus for Support Staff
Security, housekeeping, drivers, and cafeteria staff at tech parks are covered if earning ≤₹21,000.
| Support Role | Skill Classification | Zone I MW | 8.33% Bonus/Yr | Eligible? |
|---|---|---|---|---|
| Security guard | Unskilled | ₹16,000 | ₹15,994 | Yes |
| Housekeeping staff | Unskilled–Semi | ₹16,000–₹17,000 | ₹15,994–₹16,994 | Yes |
| Driver | Semi-Skilled | ₹17,000 | ₹16,994 | Yes |
| Cafeteria staff (cook) | Skilled | ₹18,500 | ₹18,493 | Yes |
| IT support (L1/L2 support) | Semi–Skilled or Skilled | ₹17,000–₹18,500 | ₹16,994–₹18,493 | Yes |
Telangana Ranks #3 Nationally — State Comparison
Telangana's unskilled Zone I bonus of ₹15,994/year ranks 3rd highest in India.
| Rank | State | Unskilled MW (₹/mo) | 8.33% Bonus/Year (₹) | vs TG |
|---|---|---|---|---|
| 1 | Karnataka (Zone I) | ₹23,376 | ₹23,366 | +₹7,372 (+46%) |
| 2 | Delhi | ₹18,456 | ₹18,443 | +₹2,449 (+15%) |
| 3 | Telangana (Zone I) | ₹16,000 | ₹15,994 | Baseline |
| 4 | Gujarat (Zone I) | ₹15,517 | ₹15,517 | -₹477 (-3%) |
| 5 | Haryana | ₹15,214 | ₹15,214 | -₹780 (-5%) |
| 6 | Tamil Nadu | ₹14,039 | ₹14,039 | -₹1,955 (-12%) |
| 7 | Maharashtra (Zone I) | ₹13,921 | ₹13,916 | -₹2,078 (-13%) |
| 8 | UP (Cat I) | ₹13,687 | ₹13,687 | -₹2,307 (-14%) |
| 9 | Rajasthan | ₹7,410 | ₹7,407 | -₹8,587 (-54%) |
| 10 | Andhra Pradesh (Zone I) | ~₹13,000 | ~₹12,643 | -₹3,351 (-21%) |
Telangana Bonus Calculation: Step-by-Step for FY 2025-26
From identification to Form D filing. Note: FY 2025-26 uses pre-June rates; June 2026 rates apply to FY 2026-27.
Step 1: Determine If Your Establishment Is Covered
- Do you have 20+ employees? → Covered by central Bonus Act
- Fewer than 20? → Check if Telangana extends coverage (typically follows 20-employee threshold)
Step 2: Identify Eligible Employees
- Salary ≤₹21,000/month (Basic + DA)
- Worked 30+ days in FY 2025-26
- Not an apprentice
Step 3: Determine the Calculation Base Per Employee
- Salary ≤₹7,000/month: Use actual salary
- ₹7,001–₹21,000/month: Use higher of ₹7,000 or applicable Telangana minimum wage
- >₹21,000/month: Not eligible for bonus
- In Telangana, since all MWs exceed ₹7,000, always use Telangana MW for the employee's skill and zone.
Step 4: Calculate Allocable Surplus
- Gross profit (as per Section 4 schedules)
- Available surplus = Gross profit – depreciation – prior year set-off
- Allocable surplus = 67% of available surplus (for companies not distributing dividends abroad)
Step 5: Determine Bonus Percentage
- If allocable surplus per employee is below 8.33% → still pay 8.33% minimum
- Between 8.33% and 20% → pay the actual percentage from surplus
- Above 20% → pay 20% maximum; set-on excess (carry forward up to 4 years)
Step 6: Calculate, Pay, and File
- Pay by: November 30, 2026 (for FY 2025-26)
- File Form D: Within 30 days of payment
- Maintain: Form A (allocable surplus), Form B (set-on/set-off), Form C (employee-wise bonus details)
Compliance — Forms, Deadlines & Penalties
Telangana bonus compliance calendar and penalty structure.
Forms Required
| Form | Purpose | When |
|---|---|---|
| Form A | Computation of Allocable Surplus | Annual — maintained by employer |
| Form B | Set-On and Set-Off Register | Annual — running balance |
| Form C | Employee-wise Bonus Details | Annual — per employee record |
| Form D | Annual Return (filed with Labour Dept) | Within 30 days of bonus payment |
Penalties for Non-Compliance
| Violation | Penalty |
|---|---|
| Non-payment of bonus | Imprisonment up to 6 months and/or fine up to ₹1,000 |
| Using ₹7,000 instead of TG MW | Recovery of shortfall + arrears + potential prosecution |
| Late payment (after Nov 30) | Interest may apply + prosecution risk |
| Not maintaining Forms A/B/C | Prosecution under Section 28 |
| Not filing Form D | Fine + compliance notice |
Telangana Statutory Bonus Calculator
Calculate per-employee and total bonus liability using the unified zone × skill table.
Frequently Asked Questions
Related Resources — Telangana Compliance
Telangana Cluster
- Minimum Wages in Telangana 2026 — MW drives the bonus calculation base
- Professional Tax in Telangana — PT + MW + Bonus = complete compliance
SalaryBox Resources
- SalaryBox Payroll — Auto-calculates Telangana bonus using unified zone × skill table, generates Forms A/B/C/D
- SalaryBox Blog: Bonus Updates — Latest Telangana bonus changes
Sources & References
| Source | Details |
|---|---|
| Payment of Bonus Act, 1965 (as amended 2015) | Central Act — defines bonus rates, eligibility (₹21,000 ceiling), calculation base (₹7,000 or MW), and penalties |
| Telangana Minimum Wages Act & Notifications | State-specific MW rates; June 2026 notification unified 77 trades into 3 zones × 4 skill levels |
| Telangana Labour Department | State enforcement, Form D filing, audit guidelines |
| Telangana Minimum Wages (June 2026 Notification) | Zone-wise minimum wage rates used as bonus calculation base post-June 2026 |
| SalaryBox Academy Database | Consolidated Telangana bonus data including zone-wise calculations, state comparison, June 2026 overhaul analysis (updated July 2026) |
Disclaimer
Bonus calculations based on the Payment of Bonus Act, 1965 (as amended 2015) and Telangana Minimum Wages Notifications (pre-June 2026 and June 2026 onward). The June 2026 overhaul unified 77 trades into 3 zones × 4 skill levels. The ₹7,000 statutory floor is overridden by Telangana's higher minimum wages. Bonus must be paid by November 30. Highly Skilled workers at ₹20,000/month (Zone I) are barely eligible — any additional allowance risks exceeding the ₹21,000 ceiling. This guide does not constitute legal or financial advice — consult a qualified labour law professional for compliance in specific scenarios.