Bonus Calculator
Calculate your statutory bonus under the Payment of Bonus Act, based on your basic salary and the applicable bonus percentage.
- Free to use
- Accurate results
- No registration required
- Works on all devices
Your result
₹6,997.20
Bonus amount
AI explanation
Formula
Bonus = min(basic salary, ₹7,000/month ceiling) × 12 × bonus%Worked example
₹3L annual basic, 8.33% (minimum bonus)
| Field | Value |
|---|---|
| Annual basic salary | 300000 |
| Bonus percentage | 8.33 |
| Bonus amount | 6997.2 |
| Wage ceiling applied? | true |
Assumptions
- Under the Payment of Bonus Act, the bonus is calculated on wages capped at ₹7,000/month (or the applicable minimum wage, whichever is higher) — this calculator uses the simpler ₹7,000 figure.
- Statutory bonus ranges from a minimum of 8.33% to a maximum of 20% of the calculation wage.
- Informational only.
Frequently asked questions
Who is eligible for statutory bonus?
Employees earning up to ₹21,000/month in basic + DA, working in establishments with 20 or more employees, who have worked at least 30 days in the accounting year.
Why is my bonus calculated on ₹7,000 instead of my actual salary?
The Payment of Bonus Act caps the wage used for bonus calculation at ₹7,000/month (or the minimum wage, if higher) — this is separate from the ₹21,000 eligibility threshold.
Can my employer pay more than the statutory minimum bonus?
Yes — many companies pay performance-linked or discretionary bonuses well above the statutory 8.33% minimum, which this calculator doesn't model since those are company-specific policies.
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Sources
- Payment of Bonus Act, 1965 — Ministry of Labour and Employment, Government of India. Effective 25-09-1965, reviewed 13-09-2026.
This calculator provides a general estimate only and does not constitute legal advice. Confirm your exact bonus entitlement with your employer's HR department.
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