Statutory bonus calculator
Enter monthly wages and the bonus rate. The calculation wage uses the statutory ceiling, not your full wage, when wages exceed it.
How statutory bonus is worked out
Statutory bonus is governed by the Payment of Bonus Act, 1965. The minimum rate is 8.33% and the maximum is 20% of the calculation wage. The calculation wage is generally Rs 7,000 per month, or the minimum wage for the scheduled employment if that is higher — not your full actual wage.
Bonus = calculation wage × rate × (months worked ÷ 12)
Employees drawing monthly wages up to the eligibility threshold (Rs 21,000, as amended) who have worked at least 30 working days in the accounting year are generally covered. Statutory bonus is different from ex-gratia or performance bonuses, which follow their own contract terms.
Sources: Payment of Bonus Act, 1965 (Sections 10 and 12). Confirm the current eligibility and calculation thresholds and the applicable minimum wage on the official source before relying on the figure. This tool is an estimate.
Worked example
Monthly wages Rs 15,000, rate 8.33%, full year. The calculation wage is capped at the ceiling, Rs 7,000, so bonus = 7,000 x 8.33% = Rs 583 for the year. If the applicable minimum wage for the scheduled employment is higher than Rs 7,000, use that figure as the calculation wage instead.
Frequently asked questions
How is statutory bonus calculated in India?
Statutory bonus under the Payment of Bonus Act is calculated as the calculation wage multiplied by the bonus rate and the proportion of the year worked. The rate must be at least 8.33% and can go up to 20%. The calculation wage is generally Rs 7,000 per month or the applicable minimum wage, whichever is higher, even if actual wages are higher.
Who is eligible for statutory bonus?
Employees drawing monthly wages up to the eligibility threshold (Rs 21,000, as amended) are covered, provided they have worked at least 30 working days in the accounting year. Confirm the current thresholds on the official source.
What is the minimum and maximum bonus?
The statutory minimum bonus is 8.33% of the calculation wage, and the maximum is 20%. Employers may pay within this range depending on allocable surplus and available surplus.
Is bonus the same as an ex-gratia or performance bonus?
No. Statutory bonus is a legal obligation under the Payment of Bonus Act. Ex-gratia, performance or festival bonuses are contractual or discretionary and follow their own terms. This calculator covers only the statutory bonus.
Who gets statutory bonus
Statutory bonus is a legal minimum, not a gift. It applies to employees within the wage threshold who have worked enough days in the year, and the rate sits between 8.33% and 20%. The amount is worked out on a capped calculation wage, not the full salary, so a higher-paid employee's bonus does not grow in line with pay. Bonus is usually paid within eight months of the accounting year ending. It is separate from any performance or festival bonus you offer, which follows its own terms.
Statutory bonus: coverage and timing
Statutory bonus is a payment the law requires, separate from any performance or festival bonus a company chooses to give. It applies to employees whose monthly wages are within the notified threshold, and who have worked at least thirty days in the accounting year. The rate must be at least eight point three three percent and cannot exceed twenty percent, depending on how the establishment's surplus is worked out. The amount is calculated on a capped wage, not the full salary, so two employees on different salaries can receive similar bonuses. Bonus is normally paid within eight months of the accounting year ending. If a business makes a loss in its first years, there are rules that can change the position, so check the Act rather than assuming.
Bonus records worth keeping
Bonus is small, but the records matter. Keep the calculation. Keep the payment proof. Note the accounting year it belongs to. Note who received it and who did not. If someone was excluded, record the reason. The rule about minimum days is a common source of questions. So is the wage limit. Write both down. Keep the papers with your payroll file. An inspector may ask for them years later. A clean file saves a lot of time. It also helps when an employee leaves and asks about old dues. Store it the same way you store payslips and challans.
About this tool
Written and maintained by the AccoNova editorial and payroll team, and last reviewed on (first published ). This is a free public calculator and an estimate, not a payslip, a tax return or professional advice. Figures depend on your salary structure, exemptions, state rules and current statutes — verify before relying on a result. AccoNova publishes product guidance and educational resources; no independent qualified statutory reviewer is claimed.
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