Statutory Bonus Calculator
Calculate the statutory bonus payable under the Payment of Bonus Act.
About the Statutory Bonus Calculator
The Payment of Bonus Act, 1965 entitles eligible employees to a statutory annual bonus, distinct from any discretionary performance bonus a company might additionally pay. It applies to employees earning up to ₹21,000 per month (basic plus dearness allowance) who have worked at least 30 days in the accounting year, in establishments employing 20 or more people. If your salary crosses that ceiling, this particular statutory entitlement doesn't apply to you — though your employer may still offer a bonus voluntarily.
The rate must fall between 8.33% (the statutory minimum, mathematically equal to one month's salary spread across the year) and 20% (the statutory maximum), depending on the company's profits under the Act's formula. The trickier part is the calculation ceiling: even if your actual salary is higher (up to the ₹21,000 eligibility limit), the bonus is calculated as though your salary were capped at ₹7,000 per month or the state minimum wage, whichever is higher — this calculator applies the simplified ₹7,000 cap; check your state's minimum wage notification if it exceeds that figure.
Bonus is payable within 8 months of the close of the accounting year. If you worked only part of the year, the months-worked field pro-rates the entitlement accordingly. This is a statutory floor, not a ceiling on generosity — many employers pay bonuses well above what the Act requires, and those additional amounts aren't governed by this specific calculation.
Frequently asked questions
- Who is eligible for statutory bonus?
- Employees earning up to ₹21,000/month (basic + DA) who worked at least 30 days in the accounting year, in an establishment with 20 or more employees. Above that salary ceiling, this statutory entitlement doesn't apply.
- Why is my bonus calculated on ₹7,000, not my actual salary?
- The Act caps the calculation salary at ₹7,000/month or the state government's minimum wage for the role, whichever is higher — even though eligibility extends up to ₹21,000/month salary. This calculator applies the simplified ₹7,000 figure; check your state's minimum wage if it's higher.
- What's the difference between minimum and maximum bonus rate?
- 8.33% is the statutory minimum every eligible employee must receive regardless of company performance. Up to 20% may be paid depending on the company's "allocable surplus" (profit-linked formula) under the Act — the actual rate is usually announced by the employer for the accounting year.