Loading calculator…
Loading calculator…
Calculate your statutory bonus as per the Payment of Bonus Act, 1965. Find out your eligibility and expected bonus amount.
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%
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.
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).
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.
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.
Statutory bonus is calculated on 'Salary or Wage', which includes Basic Salary and Dearness Allowance (DA). It excludes other allowances like HRA, Overtime, etc.
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.
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.