Published on: 2 September 2026 Category: India Post Latest News | India Post Circulars | Government Notifications
In Short (Read This First)
The Ministry of Labour and Employment has issued a new notification in The Gazette of India dated 25 August 2026. It changes how bonus is calculated for employees whose monthly wage is more than ₹7,000.
Earlier, the calculation was capped at ₹7,000. Now the government says the calculation will be done on ₹7,000 or the minimum wage fixed by the Central Government — whichever amount is higher.
In simple words: if the minimum wage is more than ₹7,000, your bonus will be calculated on that higher amount. This is good news for lakhs of employees, including many working in India Post.
Notification Details at a Glance
| Item | Detail |
|---|---|
| Issued By | Ministry of Labour and Employment, Government of India |
| Gazette Number | No. 4525 |
| Notification Number | S.O. 4710(E) |
| Date of Publication | 25 August 2026 (Tuesday) |
| Gazette Part | Part II — Section 3 — Sub-section (ii), Extraordinary |
| Legal Authority | Section 26(2), Code on Wages, 2019 (29 of 2019) |
| Signed By | Deepika Kachhal, Joint Secretary |
| File Number | F. No. S-33027/5/2026-WB |
| Effective From | 21 November 2025 (with retrospective effect) |
What Does the Notification Actually Say?
Let us break the legal language into simple points:
- The Central Government has used its power under Section 26(2) of the Code on Wages, 2019.
- This is for calculating bonus payable under Section 26(1) and Section 26(3) of the same Code.
- If an employee is eligible for bonus and his or her wage is more than ₹7,000 per month, then the bonus will be calculated as if the wage was:
- ₹7,000 per month, OR
- The minimum wage fixed by the Central Government
- — whichever of the two is higher.
- The notification is deemed to have come into force from 21 November 2025, which means it applies backwards from that date.
Why “Whichever Is Higher” Is the Important Part
This is the heart of the whole notification. Please read it carefully.
- Before this, ₹7,000 was treated as a fixed ceiling for calculation.
- Now ₹7,000 is treated as a minimum floor, not a ceiling.
- If the Central Government’s notified minimum wage is higher than ₹7,000, then the higher figure will be used.
- A higher calculation base simply means a higher bonus amount in hand.
A Simple Example
Suppose an employee earns ₹22,000 per month.
- Old method: Bonus calculated on ₹7,000 only.
- New method: If the Central Government minimum wage for that category is, say, ₹9,000, then the bonus will be calculated on ₹9,000.
- Result: The employee gets bonus on a bigger base amount.
(The figures above are only for understanding. The actual minimum wage depends on the category and the rate notified by the Central Government.)
Why This Matters for India Post Employees
Postal employees receive Productivity Linked Bonus (PLB) every year, usually around the festival season. GDS employees receive ex-gratia bonus.
Here is why this notification is worth your attention:
- Bonus calculation rules under the Code on Wages directly affect how the payable amount is worked out.
- The retrospective date of 21 November 2025 means past calculations may need to be revisited by the department.
- Employees at almost every level — GDS, MTS, Postman, Mail Guard, Postal Assistant (PA) and Sorting Assistant (SA) — should keep a copy of this Gazette notification for their records.
- Departmental circulars implementing this notification are usually issued afterwards. Keep checking India Post circulars and official orders.
Friendly advice: Do not depend only on WhatsApp forwards. Always read the original Gazette notification PDF. Rumours spread fast; official papers do not.
What Should You Do Next?
- Download and save the Gazette notification PDF for your personal file.
- Wait for the departmental order from your Circle office before making any claim.
- Check your pay slip carefully when the next bonus is credited.
- Talk to your union or divisional office if you have doubts about your specific case.
- Do not share unverified figures in groups. Share the official notification instead.
Frequently Asked Questions (FAQ)
Q1. What is the date of this notification? It was published in The Gazette of India on 25 August 2026.
Q2. From when is it applicable? It is deemed to have come into force from 21 November 2025.
Q3. Which law is it issued under? Section 26(2) of the Code on Wages, 2019.
Q4. Is the ₹7,000 limit removed? No. ₹7,000 remains, but now it works as a minimum base. If the Central Government minimum wage is higher, the higher figure is used.
Q5. Does this apply to GDS employees? GDS employees receive ex-gratia bonus under separate departmental orders. The final position for GDS will be clear once the department issues its own circular. Please follow official orders only.
Q6. Where can I read the original notification? On the official e-Gazette portal of the Government of India, using the reference CG-DL-E-25082026-275741.
Preparing for Your Next Promotion? Start Today
While bonus news is welcome, the real jump in salary comes from promotion. If you are working in India Post, a departmental exam can change your pay level completely.
Here is what most aspirants search for and prepare through:
GDS to MTS
- GDS to MTS Departmental Exam — the most popular promotion route for Gramin Dak Sevaks
- GDS to MTS Online Classes and GDS to MTS Coaching for working employees
- GDS to MTS Syllabus, GDS to MTS Exam Pattern and GDS to MTS Eligibility Criteria
- GDS to MTS Previous Year Question Papers, GDS to MTS Mock Test and GDS to MTS Practice Set
- GDS to MTS Notification, GDS to MTS Admit Card, GDS to MTS Exam Date and GDS to MTS Result
- GDS to MTS Salary, GDS to MTS Selection Process and GDS to MTS Promotion details
Aspirants prepare circle-wise as well — GDS to MTS Punjab Circle, Delhi Circle, Haryana Circle, Rajasthan Circle, Uttar Pradesh Circle, Bihar Circle, Madhya Pradesh Circle, Maharashtra Circle, Gujarat Circle, Tamil Nadu Circle, Karnataka Circle, Kerala Circle, Odisha Circle, Assam Circle and West Bengal Circle.
GDS to Postman / Mail Guard
- GDS to Postman Departmental Exam and GDS to Mail Guard promotion
- GDS to Postman Online Classes, GDS to Postman Coaching and GDS to Postman Study Material
- GDS to Postman Syllabus, GDS to Postman Question Paper and GDS to Postman Mock Test
- GDS to Postman Notification, GDS to Postman Result and GDS to Postman Salary
MTS to PA / SA and Postman to PA / SA
- MTS to PA Departmental Exam and Postman to PA Departmental Exam
- MTS to PA Online Classes and Postman to PA Online Classes with live and recorded batches
- MTS to PA Syllabus, Postman to PA Syllabus and Postal Assistant Syllabus
- MTS to PA Previous Year Question Papers and Postman to PA Previous Year Question Papers
- MTS to PA Mock Test, Postman to PA Mock Test and Postal Assistant Mock Test
- MTS to PA Notification, Postman to PA Notification, Result, Exam Date and Salary updates
General India Post Preparation
- India Post Departmental Exam guidance and India Post Coaching
- India Post Previous Year Question Papers and India Post Study Material
- India Post Mock Tests, India Post Quiz, India Post GK and India Post Current Affairs
- India Post Circulars, India Post Notifications and India Post Latest News
Whether you are aiming for GDS to MTS, GDS to Postman, MTS to PA or Postman to PA, the formula is the same — a clear syllabus, daily practice sets, and honest revision of previous year papers.
Final Word
This Gazette notification is a small change on paper but a meaningful one in your pocket. Save the PDF, read the official circular when it arrives, and share only verified information with your colleagues.
And while you wait for the bonus, keep one eye on your next promotion. That is where the real growth is.