About the Statutory Bonus Calculator
This statutory bonus calculator works out the annual bonus Indian employers must pay under the Payment of Bonus Act, 1965 and the bonus chapter of the Code on Wages, 2019 that repeals and replaces it, which keeps the same 8⅓% minimum and 20% maximum. It checks whether an employee is eligible, applies the calculation ceiling, and shows the minimum (8.33%) and maximum (20%) bonus for the accounting year, plus the amount at the rate your employer declares.
It is useful for HR and payroll teams computing Diwali or year-end statutory bonus, small business owners budgeting for it, and employees checking that they have been paid correctly. Enter the employee’s monthly wage (basic pay plus dearness allowance), the months worked and, if it applies, the state minimum wage for the employment.
The defaults use the amounts set by the Payment of Bonus Act: employees drawing wages of up to ₹21,000 a month are eligible, and bonus is calculated as if wages were ₹7,000 a month or the scheduled minimum wage, whichever is higher. The Code on Wages lets the government replace these amounts by notification, and its repeal-and-savings clause keeps the old amounts in force until then — so both are editable here. The minimum bonus is payable whether or not the employer has profits; anything above it depends on the allocable surplus, up to 20%. The employee must have worked at least 30 days in the year.
With the default inputs, the bonus payable at declared rate is ₹7,000.00. Change any value above to recalculate instantly.
How to use the statutory bonus calculator
- 1Enter the monthly wage — basic pay plus dearness allowance, excluding HRA and other allowances.
- 2Enter the months worked in the accounting year.
- 3Add the state minimum wage for the employment if it exceeds ₹7,000.
- 4Enter the bonus rate your employer declared (8.33% minimum, 20% maximum).
- 5Read eligibility, the minimum and maximum bonus and the amount payable.
Formula and method
An employee is covered if their monthly wage (basic plus dearness allowance) does not exceed the eligibility limit — ₹21,000 under the Payment of Bonus Act amounts — and they worked at least 30 days in the accounting year. For the calculation, wages are capped at ₹7,000 a month or the minimum wage fixed for the employment, whichever is higher.
The minimum bonus is 8⅓% of the wages earned in the year (or ₹100, reduced proportionately for part of a year), payable regardless of profit. If the allocable surplus allows, the employer pays more, up to 20% of wages. Employees who did not work all the working days receive bonus on the wages actually earned, which this calculator approximates with months worked.
- Wage
- Monthly basic pay plus dearness allowance
- Months
- Months (or equivalent) worked in the accounting year
- Rate
- Bonus percentage declared, 8.33% to 20%
Worked examples
₹15,000 wage, full year, minimum bonus
The wage is under ₹21,000, so the employee is eligible, but bonus is calculated on the ₹7,000 ceiling: ₹84,000 for the year × 8⅓% = ₹7,000 minimum, and up to 20% = ₹16,800.
₹18,000 wage, minimum wage ₹12,500, 20% declared
The scheduled minimum wage (₹12,500) is higher than ₹7,000, so it becomes the calculation ceiling. Wages counted are ₹1,50,000 and a 20% bonus is ₹30,000.
₹6,000 wage, worked 9 months
The wage is below the ceiling, so actual wages count: ₹6,000 × 9 = ₹54,000, and 8⅓% gives a minimum bonus of ₹4,500.
₹25,000 wage
A ₹25,000 monthly wage exceeds the ₹21,000 eligibility limit, so no statutory bonus is due (a contractual or performance bonus may still be paid).
Frequently asked questions
Who is eligible for statutory bonus in India?+
Employees drawing wages (basic plus DA) of up to ₹21,000 a month who have worked at least 30 days in the accounting year are eligible. Apprentices and certain categories excluded by law are not covered, and the government can revise the limit by notification under the Code on Wages.
How is the 8.33% bonus calculated?+
Take the wages earned in the year, capped at ₹7,000 a month or the applicable minimum wage if higher, and multiply by 8⅓%. For a full year on the ₹7,000 ceiling that is ₹84,000 × 8⅓% = ₹7,000.
What is the maximum statutory bonus?+
The maximum is 20% of the wages counted for bonus. For an employee on the ₹7,000 ceiling for twelve months, that is ₹16,800. Payments above the minimum depend on the employer’s allocable surplus.
Has the Payment of Bonus Act been replaced?+
Yes. The Code on Wages, 2019 repeals the Payment of Bonus Act and carries its bonus rules over with the same 8⅓% minimum and 20% maximum. Its savings clause keeps amounts fixed under the old Act in force until the government notifies new ones.
When must the bonus be paid?+
Bonus must generally be paid within eight months of the close of the accounting year. Many employers pay it before Diwali or another festival, and amounts paid as festival or interim bonus can be adjusted against the statutory bonus.
Results are general estimates and not legal advice. Laws vary by jurisdiction — consult a qualified attorney.