WorkLegal.in ← Back to Toolkit
Sponsored Resource

Statutory Bonus Calculator

Compute mandatory annual bonus under the Payment of Bonus Act 1965.

₹
Eligibility threshold is ₹21,000 per month.
₹
Calculation uses higher of ₹7,000 or State Min Wage.
Minimum 30 working days required for statutory eligibility.
Payment of Bonus Act
Sec 10 & 12
Eligible for Statutory Bonus (≤ ₹21,000 / Month)
Annual Statutory Bonus Payable
₹9,446
Wage Ceiling Applied for Calculation ₹11,500 / Month
Eligible Annual Wage Base ₹1,13,425 (Prorated for 300 days)
Applied Bonus Rate 8.33%
Statutory Minimum Ceiling (Sec 10) 8.33% (or ₹100 min)
Statutory Maximum Ceiling (Sec 11) 20.00% of Wage Base

How Statutory Bonus is Calculated in India

Under the Payment of Bonus Act 1965 (amended), any employee earning up to ₹21,000 per month (Basic + DA) who has worked for at least 30 working days in an accounting year is entitled to an annual statutory bonus:

Calculation Wage Base = Higher of [₹7,000 OR State Scheduled Minimum Wage]
Annual Bonus = Calculation Wage Base × (Days Worked / 365) × Bonus Percentage (8.33% to 20%)

The Section 12 Calculation Wage Ceiling

Under Section 12 of the Act, where the salary or wage of an employee exceeds ₹7,000 per month or the minimum wage for the scheduled employment (whichever is higher), the bonus payable is calculated as if their wage were ₹7,000 or the minimum wage, rather than their full actual salary.

Payment Timelines

Under Section 19, the statutory bonus must be paid in cash/bank transfer within 8 months from the close of the accounting financial year (typically by November 30 for the financial year ending March 31).