Statutory Bonus Calculator
Compute corporate bonuses & evaluate labor compliance parameters under the Payment of Bonus Act instantly.
Enter your Basic salary + Dearness Allowance (DA). Range: ₹100 - ₹21,000
Statutory bonus parameters range explicitly from 8.33% to 20%
Enter the scheduled minimum wage applicable to your region's industry classification
Enter details and click
Awaiting Payroll Configurations
How the Payment of Bonus Act, 1965 Governs Corporate Payroll
The Payment of Bonus Act, 1965 creates a statutory duty for specific establishments in India to share a portion of their surplus profits with their workforce. This legal framework ensures fair compensation loops, protecting employees' financial security during festive or appraisal cycles while standardizing human resource bookkeeping.
Deciphering the Statutory Calculation Ceiling
An employee's actual wage is not always the number used to calculate their bonus. The legal computation depends on a unique conditional comparison formula designed to establish a standard baseline:
If an employee's Monthly Basic + DA is ₹21,000 or less, their bonus is computed using an effective base salary capped at ₹7,000 or the State's Minimum Wage (whichever is higher). If their actual basic salary is less than this ceiling, the bonus is simply calculated using their actual earnings.
Legal Percentages & Allocations
Minimum Mandatory Bonus
8.33%
Companies must pay this minimum rate even if they incur a net loss during the financial year.
Maximum Permissible Bonus
20.00%
The maximum ceiling percentage an employer is legally required to distribute from allocable surplus pools.
Frequently Asked Questions
Are employees earning more than ₹21,000 eligible for a bonus?
Employees with a Basic + DA above ₹21,000 per month are excluded from statutory bonus obligations. However, employers can still choose to issue discretionary, performance-linked, or non-statutory bonuses to these team members.
What types of businesses are required to follow these bonus regulations?
The Act applies to every factory and any other establishment that employs 20 or more individuals on any given day during a financial year.