Bonus Calculator
Calculate your statutory bonus as per the Payment of Bonus Act, 1965. Find out your eligibility and expected bonus amount.
Bonus Details
The ₹7,000 Rule
Even if your salary is ₹20,000, the statutory bonus is calculated on a base of ₹7,000 (or the minimum wage, whichever is higher).
Capped at ₹7,000/month
Range: 8.33% - 20%
Statutory Limits
Understanding the Payment of Bonus Act, 1965
The Payment of Bonus Act, 1965 is a central law in India that mandates employers to share a portion of their profits with employees. It applies to every factory and every other establishment in which 20 or more persons are employed.
Eligibility Criteria
- Employee must earn ₹21,000 or less per month.
- Must have worked for at least 30 working days in the financial year.
- Applies to establishments with 20+ employees.
Calculation Base
If the salary is above ₹7,000, the bonus is calculated as if the salary were ₹7,000 or the minimum wage for the scheduled employment (whichever is higher).
Minimum & Maximum Bonus
The Act mandates a minimum bonus of 8.33% of the salary earned during the year. The maximum bonus is capped at 20% of the salary.
Frequently Asked Questions
What if my salary is more than ₹21,000?
If your salary exceeds ₹21,000, you are not legally entitled to a statutory bonus under the Act. However, companies often provide performance-based bonuses or ex-gratia payments which are not governed by this specific Act.
Is the bonus calculated on Gross or Basic salary?
Statutory bonus is calculated on 'Salary or Wage', which includes Basic Salary and Dearness Allowance (DA). It excludes other allowances like HRA, Overtime, etc.
When is the bonus usually paid in India?
The Act requires the bonus to be paid within 8 months from the close of the financial year. In India, it is traditionally paid around the Diwali festival.
Can an employer refuse to pay bonus?
An employer can only refuse to pay if the establishment has incurred a loss for a continuous period of 5 years (for new establishments) or if the employee is dismissed for fraud, riotous behavior, or theft.