Bonus Eligibility & Calc
Bonus payable under the Payment of Bonus Act, 1965.
Compute statutory bonus under the Payment of Bonus Act, 1965 (now subsumed by the Code on Wages, 2019 from 21 November 2025). Mandatory bonus: minimum 8.33%, maximum 20% of qualifying wages.
Bonus Computation
Wages for bonus (capped at Rs 7,000 or min wage)₹ 0
Months worked0
Bonus rate8.33%
Annual Bonus Payable₹ 0
Eligibility: Employee drawing wages up to Rs 21,000/month. Wages above Rs 7,000/month are limited to Rs 7,000 (or minimum wage of the scheduled employment, whichever is higher) for bonus calculation purposes.
Bonus rules:
- Eligibility: Employees drawing wages up to Rs 21,000/month and worked for at least 30 days in the accounting year.
- Coverage: Factories and other establishments employing 20 or more persons (10 in certain states).
- Minimum bonus: 8.33% of wages or Rs 100, whichever is higher.
- Maximum bonus: 20% of wages, subject to allocable surplus / set-on / set-off mechanism.
- Calculation base: Wages capped at Rs 7,000/month OR minimum wage of the scheduled employment (whichever is higher).
- Payment timeline: Within 8 months of FY closure (i.e., by 30 November typically).
- Disqualification: Dismissal for fraud, riotous behaviour, theft (Sec 9).
- Set-on / Set-off: Allocable surplus above 20% must be set on (max 20% bonus equivalent); shortage below 8.33% can be set off against future years.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.
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