Statutory bonus payable in India. The Bonus Calculator (Payment of Bonus Act) takes monthly basic + da, bonus rate (8.33% minimum, 20% maximum), months worked in the year, wage ceiling for calculation (₹7,000 or the minimum wage, whichever is higher) and returns statutory bonus for the year plus eligibility, bonus per month worked. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Payroll figures should follow the rules in your contracts and local law. Where a rule differs between states or countries, adjust the inputs; the calculator shows its assumptions so you can check them against your own policy. Use the worked example below to check the maths against your own figures.
How the Bonus Calculator (Payment of Bonus Act) works
The Payment of Bonus Act covers employees earning up to ₹21,000 a month who worked at least 30 days; the bonus is 8.33% to 20% of wages, calculated on the actual wage or ₹7,000 (or the minimum wage if higher), whichever is lower.
Worked example
With the example values (monthly basic + da of ₹15,000, bonus rate (8.33% minimum, 20% maximum) of 8.33%, months worked in the year of 12, wage ceiling for calculation (₹7,000 or the minimum wage, whichever is higher) of ₹7,000), the statutory bonus for the year is ₹6,997.20; eligibility Eligible (salary up to ₹21,000), bonus per month worked ₹583.10. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Assumptions and limits: Statutory minimum under the Payment of Bonus Act; employers may pay more by contract.
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Frequently Asked Questions
How is statutory bonus for the year calculated?
bonus = min(salary, wage ceiling) × bonus rate × months worked.
Which figures do I need?
Monthly basic + da, bonus rate (8.33% minimum, 20% maximum), months worked in the year, wage ceiling for calculation (₹7,000 or the minimum wage, whichever is higher). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Do the rules differ by location?
Yes. Statutory rates, ceilings and eligibility conditions vary by country and often by state. Adjust the inputs to your jurisdiction and confirm with your payroll provider or labour law adviser.
What assumptions does this calculator make?
Statutory minimum under the Payment of Bonus Act; employers may pay more by contract.
