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Bonus Calculator

Statutory bonus under the Payment of Bonus Act

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What this calculator does

Estimate the statutory annual bonus payable based on salary and the applicable bonus rate.

Payment of Bonus Act

Good to know

  • Statutory bonus applies to employees earning up to ₹21,000 a month.
  • Bonus is calculated on wages capped at ₹7,000, OR the notified minimum wage for that scheduled employment — whichever is higher (Sec 12, 2015 amendment).
  • The rate must be between 8.33% (minimum) and 20% (maximum) of the bonus wage, based on company profits.
  • Bonus is payable once the employee completes at least 30 working days in the accounting year.

Results

Estimated annual bonus

₹6,997

₹583 / month equivalent

Calculation ceiling used₹7,000
Bonus wage considered₹7,000
Effective rate applied8.33%
Eligible under the Act?Yes

Estimate only, based on the Payment of Bonus Act, 1965. The exact rate depends on the employer's allocable surplus for the accounting year — consult your finance team for the declared rate.

How it works

How this calculator works

Employees earning up to ₹21,000 a month are eligible for statutory bonus, calculated on wages capped at ₹7,000, at a rate between 8.33% (minimum) and 20% (maximum) based on company profits.

Bonus Calculator formula

Statutory bonus = Bonus rate (8.33% to 20%) × the higher of ₹7,000 or the applicable minimum wage × months worked. Applies to employees earning up to ₹21,000 a month.

Worked example

Sunil earns ₹15,000 a month, worked all 12 months, and his employer pays the minimum 8.33% bonus. Assume the applicable minimum wage is below ₹7,000.

  1. Sunil earns ≤ ₹21,000, so he is eligible.
  2. Calculation salary = ₹7,000 (the ceiling, since it is higher than the minimum wage)
  3. Bonus = 8.33% × ₹7,000 × 12 = ₹6,997

Sunil's statutory bonus for the year is ₹6,997. At the maximum 20% rate it would be ₹16,800.

Questions

Bonus Calculator: FAQs

Yes, the minimum 8.33% bonus is payable regardless of profit, subject to eligibility conditions being met.

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