Calculate statutory bonus payable under the Payment of Bonus Act, 1965.
The exact percentage between the 8.33% floor and 20% ceiling depends on your employer's "allocable surplus" for the year — a profit-linked calculation under the Act. Most employers default to the 8.33% minimum unless their surplus supports a higher payout.
Employees earning Basic + DA up to ₹21,000 per month, who have worked at least 30 days in the financial year, are eligible under the Payment of Bonus Act, 1965 — provided the establishment has 20 or more employees.
Yes. The minimum bonus of 8.33% of qualifying wages must be paid regardless of profits or losses, with narrow exceptions for newly established companies in their first few years.
Even if your actual Basic + DA is higher (up to the ₹21,000 eligibility limit), the bonus is calculated as if your salary were capped at ₹7,000 per month (or your state's notified minimum wage, if higher). This caps the maximum bonus amount even for eligible higher earners.
No. Anything paid above 20% of qualifying wages is not statutory bonus under the Act — it would be classified as ex-gratia, performance bonus, or a customary/discretionary payment instead.
Yes, statutory bonus is fully taxable as salary income and subject to TDS under Section 192. It does not attract PF or ESI contributions.
The Payment of Bonus Act, 1965 guarantees eligible employees in India a minimum annual bonus, regardless of company profitability, while capping how much of that bonus counts as "statutory" for compliance purposes. This calculator applies the eligibility ceiling, calculation ceiling, and percentage range as defined in the Act.
This calculator is for illustration only. Your employer's actual obligation depends on its allocable surplus calculation, any state-specific minimum wage notifications, and your specific employment terms — consult your HR department or a labour law professional for precise figures.
