Statutory bonus calculator
Estimate annual statutory bonus at 8.33% to 20% of the calculation wage.
Annual bonus payable
₹6,997
Payment of Bonus Act, 1965. Bonus is computed on the lower of Basic + DA and ₹7,000 (or the minimum wage, if higher). Indicative only.
How it works
Statutory bonus was governed by the Payment of Bonus Act, 1965 and is now covered by the Code on Wages, 2019, in force from 21 November 2025. Employees earning up to ₹21,000 a month (basic + DA) who have worked at least 30 days in the year are eligible.
Bonus is computed on a calculation wage: the lower of actual basic + DA and ₹7,000, or the applicable minimum wage if that is higher.
Formula
- Eligibility: basic + DA ≤ ₹21,000 a month and at least 30 working days
- Calculation wage = min(basic + DA, higher of ₹7,000 and minimum wage)
- Bonus = calculation wage × rate × months worked
- Rate: minimum 8.33%, maximum 20%, based on allocable surplus
Worked example
Basic + DA of ₹18,000, 12 months, 8.33%
- Calculation wage: ₹7,000 (assuming the minimum wage is lower)
- Bonus: ₹7,000 × 8.33% × 12 = ₹6,997
Common mistakes to avoid
- Computing bonus on actual basic instead of the capped calculation wage.
- Using ₹7,000 where the state minimum wage is higher and should be the ceiling.
- Excluding employees who are eligible because they joined mid-year.
- Paying bonus after the statutory time limit of eight months from the close of the accounting year.
Statutory bonus calculator: FAQs
Is statutory bonus mandatory?
For covered establishments and eligible employees, the minimum bonus of 8.33% is payable even if there is no allocable surplus, subject to the statute's conditions.
What is the maximum bonus?
20% of the calculation wage.
Can monthly bonus be paid in advance?
Some employers pay bonus monthly as part of salary. It must still meet the statutory minimum for the year when reconciled.
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