Calculator

Statutory bonus
calculator

Check whether an employee is covered by the Payment of Bonus Act and work out the bonus for the year at the minimum, maximum or any rate in between, on the wage ceiling the Act uses.

Figures reviewed September 2026. Statutory rates change; confirm with the notification before filing.

Basic + DA per month

₹

Employees earning up to ₹21,000 are eligible.State minimum wage for the job, per month

₹

Leave at 0 if it is below ₹7,000. Bonus is worked out on the higher of the two.

Months worked in the year

months

At least 30 working days to qualify.Bonus rate

8.33% minimum, 20% maximum.

Statutory bonus for the year

Wages bonus is worked out on

Capped at ₹7,000

₹7,000

Bonus wages for the year

₹84,000

Bonus at 8.33%

₹6,997

Minimum at 8.33%

₹6,997

Maximum at 20%

₹16,800

₹7,000 a month × 12 months × 8.33%. Pay within 8 months of the end of the accounting year.

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How statutory bonus works

Who is eligible

Employees whose basic plus DA is ₹21,000 a month or less, who worked at least 30 days in the accounting year, in an establishment the Act covers: generally 20 or more people, and factories.

₹7,000 or the minimum wage

Bonus is calculated on wages capped at ₹7,000 a month or the minimum wage for that employment, whichever is higher. An employee earning ₹16,000 in a state where the minimum wage is ₹12,000 gets bonus on ₹12,000.

8.33% to 20%

The minimum bonus is 8.33% of the capped wages, or ₹100, whichever is more, whether or not the company made a profit. Above that, up to 20%, depends on the allocable surplus worked out under the Act.

Pay within eight months

Bonus for an accounting year must be paid within eight months of its close. For a year ending 31 March, that is by 30 November, which is why many companies pay it at Diwali.

Wages that count

Basic and dearness allowance for the days actually worked, including paid leave. Overtime, HRA, other allowances and incentives are not bonus wages.

Under the Code on Wages

The Code on Wages carries these bonus provisions forward, with the eligibility and calculation limits set by notification. Check the limits your state has notified for the current year.

Questions people ask

How is statutory bonus calculated?

Take basic and DA for each month, capped at ₹7,000 or the scheduled minimum wage if that is higher, add up the year, and multiply by the bonus rate. At the 8.33% minimum on a ₹7,000 cap for twelve months, the bonus is ₹6,997.

Is bonus mandatory if the company made a loss?

The minimum bonus of 8.33% is payable by covered establishments whether or not there is a profit. Only the amount above the minimum depends on the allocable surplus.

Who is not eligible for statutory bonus?

Employees earning more than ₹21,000 a month in basic and DA, those who worked fewer than 30 days in the year, apprentices, and employees dismissed for fraud, violent behaviour, theft or sabotage.