Statutory Bonus Calculator

Statutory Bonus Calculator (Payment of Bonus Act)

Every eligible employee drawing wages up to ₹21,000 a month is entitled to a statutory bonus under the Payment of Bonus Act, 1965. The bonus ranges from a minimum of 8.33% to a maximum of 20% of the eligible wage, and must be paid within eight months of the close of the accounting year. This calculator gives you the figure instantly; the full report adds the eligibility rules and the set-on/set-off working that decides exactly where in that band you land.

How statutory bonus is calculated

Bonus is computed on the lower of the employee’s actual wages or the ₹7,000 (or applicable minimum-wage) ceiling. At 8.33% this is the guaranteed minimum every covered employer must pay, regardless of profit. The 20% ceiling applies when allocable surplus is high. Getting the allocable-surplus, set-on and set-off calculations right is where most in-house teams slip, either overpaying or exposing themselves to a claim.

Who is eligible for statutory bonus?

Employees who have worked at least 30 days in the accounting year and draw wages up to ₹21,000 per month are covered. The Act applies to establishments with 20 or more employees. New businesses have a limited exemption in their initial years.

Frequently asked questions

Is statutory bonus mandatory even if my company makes a loss?
Yes. The 8.33% minimum bonus is payable irrespective of profit or loss for all covered establishments.

What is the last date to pay statutory bonus?
Within eight months from the end of the accounting year.

How is the ₹7,000 ceiling applied?
Bonus is calculated on the lower of actual wages or ₹7,000 (or the state minimum wage for the category, whichever is higher).