Statutory bonus calculator
Estimate the statutory bonus under the Payment of Bonus Act, 1965 — the ₹21,000 eligibility salary, the ₹7,000 calculation ceiling, and the 8.33%–20% range. Figures from the Act, checked on October 28, 2026; an estimate, not advice.
Calculate the statutory bonus
Eligible up to ₹21,000/month.
Between 8.33% and 20%.
Raises the ₹7,000 calc base if higher.
Estimated annual statutory bonus
₹6,997
Computed on a capped base of ₹7,000 a month × 12 × 8.33%.
An estimate under the Payment of Bonus Act, 1965. The actual rate depends on the employer's allocable surplus. Not advice.
How it works
The Payment of Bonus Act guarantees a bonus to lower-paid employees. An employee earning up to ₹21,000 a month qualifies, but the bonus is computed on a capped wage of ₹7,000 a month (or the minimum wage, if higher) — so a higher actual salary does not increase the statutory bonus. The rate runs from 8.33% (the minimum, payable even in a loss year) to 20%(the maximum), set by the employer's allocable surplus.
Related
Frequently asked questions
Who is eligible for a statutory bonus?
An employee whose salary (basic + DA) is up to ₹21,000 a month and who has worked at least 30 days in the accounting year, in an establishment the Payment of Bonus Act, 1965 covers (generally 20 or more employees). Above ₹21,000 a month, any bonus is contractual rather than statutory.
How is the statutory bonus calculated?
On a capped wage: the lower of the actual salary and ₹7,000 a month (or the minimum wage for that work, if higher). The bonus is that base × 12 × the rate, where the rate is between 8.33% (the minimum) and 20% (the maximum). So someone earning ₹15,000 has their bonus worked out on ₹7,000.
What decides whether it is 8.33% or 20%?
The employer's allocable surplus for the year under the Act's schedules. 8.33% (or ₹100, whichever is higher) is the minimum payable even in a loss year; 20% is the maximum. This calculator lets you pick a rate in that band to see the range.
When is the bonus paid?
Within eight months of the close of the accounting year. The Payment of Bonus Act's figures have carried into the Code on Wages, 2019; confirm the current position before relying on a number.
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Sources
Thresholds and rates are set by statute and notification and change over time. Every figure here was checked on October 28, 2026; verify the current position on the official source before you rely on it. This is general information, not advice.
- The Payment of Bonus Act, 1965 (clc.gov.in)The ₹21,000 eligibility salary, the ₹7,000 calculation ceiling, and the 8.33%–20% bonus range.
Run this in payroll with HelloTime
Gratuity, bonus, PF and ESI are payroll — computed and filed in HelloTime, the payroll & attendance product in the HelloBooks suite, with the entries posting into your HelloBooks books. HelloBooks itself is the accounting and GST software; it does not run payroll or file PF/ESI returns. These calculators are estimates, not payslips.