Statutory Bonus Calculator India — Payment of Bonus Act
Calculate your statutory bonus under the Payment of Bonus Act, 1965. Minimum 8.33%, maximum 20% of basic + DA. Salary ceiling ₹21,000/month (2015 amendment). Check eligibility, above-ceiling impact, and how bonus affects your income tax for FY 2025-26.
Try another scenario
How to Use This Calculator
My Bonus tab
Enter your monthly salary (basic + DA only) and the number of months worked during the financial year. The calculator shows your statutory bonus range — minimum 8.33% and maximum 20% — under the Payment of Bonus Act, 1965. If your salary exceeds ₹21,000/month, the calculation is automatically capped at the ceiling. "Salary" means basic pay + Dearness Allowance only — do NOT include HRA, overtime, or other allowances.
Above Ceiling tab
Enter your actual monthly salary (even if above ₹21,000) and months worked. The calculator shows your statutory bonus calculated on the ₹21,000 ceiling versus what it would be on your full salary. This helps you understand the impact of the salary cap and whether you should negotiate ex-gratia bonus with your employer.
Bonus Tax Impact tab
Enter your bonus amount, annual salary (without bonus), and choose your tax regime. The calculator computes your income tax with and without the bonus to show the marginal tax on bonus — how much extra tax you pay and what you effectively take home after tax.
Share your result
All inputs are encoded in the URL. Click Share to send your exact bonus calculation to a colleague, HR, or bookmark it for reference.
The Formula
The Payment of Bonus Act, 1965 (as amended in 2015) provides the framework for statutory bonus calculation:
Bonus = Salary × Rate × Months Worked / 12
Where:
Salary = Basic Pay + Dearness Allowance (per month)
Rate = 8.33% (minimum) to 20% (maximum)
Salary for calculation = min(Actual Salary, ₹21,000)
Minimum Bonus (Section 10):
Minimum Bonus = Salary × 8.33% × Months / 12
This is mandatory regardless of profit or loss.
Maximum Bonus (Section 11):
Maximum Bonus = Salary × 20% × Months / 12
Actual rate depends on allocable surplus of the establishment.
Salary Ceiling (Section 12):
If actual salary > ₹21,000/month: bonus calculated on ₹21,000
If actual salary ≤ ₹21,000/month: bonus calculated on actual salary
Eligibility (Section 8):
Employee must have worked ≥ 30 days in the accounting year.
Establishment must have ≥ 20 employees (10 for factories).
The actual bonus rate between 8.33% and 20% depends on the allocable surplus of the establishment. The employer calculates available surplus from profits, and excess or shortfall is managed through set-on and set-off provisions (Sections 15 & 16) over a 4-year rolling window.
Example
Priya — factory worker in Pune, ₹18,000 basic + DA, 12 months worked
Priya (28) works at a manufacturing unit in Pune with 150 employees. Her monthly basic pay is ₹14,000 and DA is ₹4,000, totalling ₹18,000/month. She has worked the full financial year (12 months). She wants to know her statutory bonus entitlement.
Step 1: Determine calculation base
Step 2: Calculate bonus range
Step 3: What Priya actually receives
Priya is guaranteed at least ₹17,993 as minimum statutory bonus. The actual amount (up to ₹43,200) depends on her employer's allocable surplus for the year. The bonus must be paid within 8 months of the financial year closing (by 30 November 2026). The bonus is fully taxable as salary income.