Statutory Bonus Calculator India 2026 — Payment of Bonus Act
Calculate your statutory bonus as per the Payment of Bonus Act 1965. Instantly compute minimum (8.33%) and maximum (20%) bonus with full breakup.
| Detail | Amount |
|---|---|
| Monthly Basic + DA | ₹0 |
| Calculation Base (per month) | ₹7,000 |
| Annual Calculation Base | ₹84,000 |
| Bonus Percentage Applied | 8.33% |
| Months Eligible | 12 |
| Annual Bonus | ₹0 |
How to Use the Bonus Calculator
- Enter your monthly Basic + DA salary. If it exceeds ₹7,000, the calculator automatically uses ₹7,000 as the calculation base.
- Set the bonus percentage — minimum 8.33% (mandatory), maximum 20% as per the Payment of Bonus Act.
- Enter the number of months worked in the accounting year (1–12).
- Enter the applicable minimum wage for your state/region (default ₹7,000).
- Click Calculate Bonus to instantly see your statutory bonus amount with full breakup.
Statutory Bonus Formula (Payment of Bonus Act 1965)
Annual Bonus = Calculation Base × 12 × Bonus% ÷ 100
Minimum Bonus = 8.33% of annual wages (= 1 month salary)
Maximum Bonus = 20% of annual wages
Eligible Salary Range: Basic+DA ≤ ₹21,000/month
The Payment of Bonus Act 1965 (amended 2015) mandates statutory bonus for all eligible employees. The act uses a wage ceiling of ₹7,000/month for calculation, but this is compared to the applicable minimum wage and the higher figure applies. Formula reviewed by Vipul Jaganiya, Computer Science expert.
Statutory Bonus Calculation Examples
| Employee | Basic+DA/Month | Calc Base | Bonus % | Annual Bonus |
|---|---|---|---|---|
| Shop Floor Worker | ₹9,500 | ₹7,000 | 8.33% | ₹6,997 |
| Office Clerk | ₹14,000 | ₹7,000 | 10% | ₹8,400 |
| Jr. Accountant | ₹18,000 | ₹7,000 | 20% | ₹16,800 |
| Sales Rep (6 months) | ₹12,000 | ₹7,000 | 8.33% | ₹3,499 |
* Minimum wage assumed ₹7,000/month. Actual minimum wage varies by state and industry.
Frequently Asked Questions — Statutory Bonus
Statutory bonus is a mandatory payment under the Payment of Bonus Act 1965. It applies to employees earning up to ₹21,000 per month in establishments with 20 or more employees. The minimum bonus is 8.33% and maximum is 20% of annual basic salary.
Under the Payment of Bonus Act 1965, the minimum bonus is 8.33% (which equals one month salary) and the maximum bonus is 20% of the annual basic+DA salary.
Even if an employee’s basic+DA exceeds ₹7,000 per month, the bonus is calculated on a notional wage of ₹7,000 per month (or the minimum wage, whichever is higher) as per the Payment of Bonus Act.
Employees earning up to ₹21,000 per month (basic+DA) who have worked for at least 30 days in an accounting year are eligible. The Act applies to factories and establishments employing 20 or more workers.
Yes, all types of bonus including statutory bonus, performance bonus, and joining bonus are fully taxable as salary income. They are added to the employee’s total salary and taxed at the applicable slab rate.
Statutory bonus must be paid within 8 months from the close of the accounting year (April to March). So bonus for FY 2025–26 must be paid by November 30, 2026.
Statutory bonus is mandatory under law (Payment of Bonus Act) and has defined minimum and maximum percentages. Ex-gratia is a discretionary payment made by the employer as a goodwill gesture, not governed by the Bonus Act.
If the employee’s basic+DA exceeds ₹7,000 per month, the bonus is calculated on ₹7,000 per month (or applicable minimum wage, whichever is higher). The excess salary does not increase the bonus calculation base.