Calculate the statutory bonus payable under the Payment of Bonus Act, based on Basic + DA, the bonus percentage, and the number of months worked.
How to Use the Bonus Calculator
Enter your monthly "Basic + DA (₹/month)".
Enter the "Bonus Percentage (%)" - the Payment of Bonus Act mandates a minimum of 8.33% and a maximum of 20%.
Enter the "Months Worked" during the accounting year (up to 12).
Click "Calculate Bonus" to see your eligible salary and bonus amount.
How Statutory Bonus Is Calculated
Bonus = Salary used for bonus × Months worked × Bonus % ÷ 100.
The salary used is your monthly Basic + DA, but capped. Under the Payment of Bonus Act the cap is ₹7,000 a month or the minimum wage fixed for your type of work, whichever is higher. Because minimum wages in most states are now well above ₹7,000, entering your applicable minimum wage usually gives a more accurate figure. If you leave that field blank, the calculator uses ₹7,000.
The percentage is at least 8.33% (one month's capped salary in a year) and at most 20%. Where an employer pays between the two depends on its "allocable surplus", a share of the year's profits worked out under the Act. The minimum 8.33% is payable even if the employer made a loss, subject to the rules for new establishments.
Worked Example
A factory worker earns Basic + DA of ₹18,000 a month and worked all 12 months. The applicable minimum wage for the job is ₹12,000 a month.
Case
Salary used
Annual bonus
Minimum wage entered, 8.33%
₹12,000
₹11,995.20
Minimum wage entered, 20%
₹12,000
₹28,800
No minimum wage entered, 8.33%
₹7,000
₹6,997.20
The third row shows why the minimum wage matters: using only the ₹7,000 cap would understate the minimum bonus by about ₹5,000. If the same worker had joined in June and worked 7 months, the 8.33% bonus on ₹12,000 would be ₹6,997.20.
Who Is Entitled to Statutory Bonus
Employees whose Basic + DA is up to ₹21,000 a month. Above this, the Act does not require a bonus, and the calculator shows a note.
Employees who worked at least 30 working days in the accounting year.
Employees of factories and of other establishments with 20 or more people. Once covered, an establishment stays covered even if headcount later falls.
An employee dismissed for fraud, theft, misappropriation, sabotage or violent behaviour on the premises can be disqualified from bonus for that year.
Practical Points
Statutory bonus must normally be paid within 8 months of the end of the accounting year. Many employers pay it before Diwali or another major festival.
Bonus is taxable as salary in the year you receive it, and your employer will deduct TDS on it along with your regular pay.
Performance bonuses, joining bonuses and annual incentives are separate from statutory bonus. They depend on your offer letter or company policy, not on this formula.
Some employers pay bonus monthly as part of the salary. Check your payslip before assuming it is due as a lump sum.
The Code on Wages, 2019 brings the Payment of Bonus Act into a single labour code and keeps the same 8.33% to 20% structure, but the wage ceilings under the Code are set by government notification and can change. Check the current limits with your HR team or the labour department of your state.
Frequently Asked Questions
The Payment of Bonus Act limits the salary on which bonus is calculated to ₹7,000 a month or the minimum wage for the job, whichever is higher. So even if your Basic + DA is ₹18,000, the bonus is worked out on the capped figure. Enter your minimum wage to use it as the cap.
The Payment of Bonus Act requires employers to pay a minimum bonus of 8.33% of the eligible salary, and caps it at a maximum of 20%, depending on the company's allocable surplus for the year.
The Payment of Bonus Act applies to establishments with 20 or more employees, and to employees earning up to a wage ceiling notified under the Act. Many companies also pay a separate, discretionary "performance bonus" outside this statutory framework, which this calculator doesn't cover.
Minimum wages are fixed by the central and state governments for each type of work and skill level, and are revised periodically with a variable dearness allowance. Your state labour department publishes the current rates, and your HR or payroll team can tell you which category applies to you.
Yes, if you worked at least 30 working days in the accounting year. The bonus is proportionate to the salary you earned, so enter the number of months you actually worked.