Statutory Bonus Calculator India 2026
Compute your annual statutory bonus under the Payment of Bonus Act, 1965. Eligible employees earning ≤ ₹21,000/month are entitled to 8.33%–20% of their calculation wages (capped at ₹7,000/month).
Enter your salary details
| Component | Monthly | Annual |
|---|---|---|
| Your gross salary | ₹18,000 | ₹2,16,000 |
| Your basic salary | ₹15,000 | ₹1,80,000 |
| Calculation wage (capped ₹7k) | ₹7,000 | ₹84,000 |
| Statutory bonus (8.33%) | ≈ ₹583 | ₹6,997 |
How the calculation works
- Check eligibility: gross salary ≤ ₹21,000/month AND employment ≥ 30 days in the year
- Determine calculation wage: min(basic salary, ₹7,000) — the statutory ceiling
- Annual calculation wages = calculation wage × 12 months
- Bonus = annual calculation wages × rate (8.33% min to 20% max)
- Employer must pay if allocable surplus allows; minimum bonus is mandatory regardless
Quick facts
- Eligible if gross salary ≤ ₹21,000/month and worked ≥ 30 working days in the year
- Calculation wage is capped at ₹7,000/month even if basic salary is higher
- Minimum bonus = 8.33% of annual calculation wages — mandatory even if no allocable surplus
- Maximum bonus = 20% of annual calculation wages (employer's discretion based on profits)
- Bonus payable within 8 months of the financial year end (i.e., by November for April–March year)
- Fully taxable income — added to salary and taxed at your slab rate
Watch-outs
- •Bonus is NOT wages for PF/ESI purposes — no provident fund deducted from bonus
- •Probationary employees: if you worked ≥ 30 days, you qualify — probation doesn't exclude you
- •Resignation before bonus payment date: you're still entitled to pro-rata bonus for days worked
- •Employer can forfeit bonus for misconduct under Section 9 — only if proven via due process
- •Establishments < 20 employees OR < 5 years old may not be covered — check Payment of Bonus Act schedule
Statutory Bonus FAQ
Who is eligible for statutory bonus in India?
Employees earning a gross salary of ₹21,000/month or less, who have worked for at least 30 working days in the accounting year, in any establishment covered by the Payment of Bonus Act (factories and establishments with 20+ employees). Both full-time and part-time employees are eligible. Apprentices and trainees may be excluded depending on their contract.
What is the minimum guaranteed bonus?
8.33% of annual calculation wages (calculation wage = min(basic, ₹7,000) × 12). This is the MINIMUM — the employer must pay this even if the company made no profit or made a loss, as long as the establishment has been in operation for more than 5 years. For establishments less than 5 years old with losses, minimum bonus may be deferred.
How is the bonus calculation wage different from my actual salary?
The Bonus Act caps the 'calculation wage' at ₹7,000/month. If your basic salary is ₹15,000, the bonus is computed only on ₹7,000. This prevents the bonus bill from inflating with salary increases. The ₹7,000 ceiling was set in 2016 — it has not been revised since.
When does my employer have to pay the bonus?
Within 8 months from the close of the accounting year. For a standard April–March year, bonus must be paid by November 30. Many employers pay during Dussehra or Diwali for cultural reasons — that timing generally coincides with the 8-month rule. Delayed payment beyond 8 months requires prior labour authority approval.
Is statutory bonus taxable?
Yes, fully taxable. Bonus is treated as 'salary income' under Section 17(1) of the Income Tax Act. It is added to your gross salary for the year and taxed at your applicable slab rate. Unlike EPF or gratuity, there is no tax exemption for statutory bonus.
Can my employer skip bonus if the company had losses?
For minimum bonus (8.33%): generally no — unless the company is less than 5 years old AND ran at a loss in that year. Established companies must pay the minimum regardless. For bonus above 8.33% (up to 20%): yes, this depends on 'allocable surplus' (67-60% of net profits after adjustments) — if no surplus, no additional bonus beyond minimum.
Is the ex-gratia bonus different from statutory bonus?
Yes. Statutory bonus is mandatory under the Payment of Bonus Act and computed by a fixed formula. Ex-gratia is a discretionary payment by the employer — not governed by the Act. Companies often call Diwali bonuses 'ex-gratia' to avoid the statutory framework. If your employment contract mentions ex-gratia, it likely means a performance-based discretionary payment, not the statutory entitlement.