India Statutory Bonus Calculator under the Payment of Bonus Act
Every establishment with the required headcount must pay an annual bonus to eligible employees. This tool gives plant owners and payroll teams a quick, defensible estimate before Diwali or year-end.
Your numbers
Basic plus DA. Used for the eligibility test against the limit.
Scheduled employment minimum wage for the state and skill category.
Rs 7,000 under the Act, or the minimum wage if higher.
Employee must have worked at least 30 days in the year.
Minimum 8.33 percent, maximum 20 percent of the bonus wage.
Your results
Planning estimate. Allocable surplus rules, set-on and set-off, and state minimum wage notifications can change the final amount.
Total bonus outgo vs bonus percentage
Sweeps Bonus percentage from 8.33 to 20, holding your other inputs fixed.
Bonus and payroll accruals from ERP data
Optional expert review to automate monthly bonus and gratuity accruals from your ERP.
Optional. The tool and every export work without this. No spam.
How to use it
Enter the monthly wage, the state minimum wage for the employee's category, the months worked and the bonus rate. The calculator selects the bonus wage, checks eligibility against the salary limit and multiplies by months and rate. Increase the headcount to see the total outgo and the monthly provision to book in advance.
- Use the minimum wage of the scheduled employment, not the company grade
- Pro-rate months for joiners and leavers
- Set the rate to 8.33 if allocable surplus is limited
The rule behind the numbers
The bonus wage is the lower of the actual wage and the higher of Rs 7,000 or the applicable minimum wage. Bonus equals bonus wage multiplied by the percentage and by months worked. The minimum rate is 8.33 percent even if the company has no profit, and the maximum is 20 percent when allocable surplus allows.
Worked example
An operator earns Rs 18,000, state minimum wage is Rs 12,000, so the bonus wage is the lower of 18,000 and 12,000, which is 12,000. For 12 months at 8.33 percent the bonus is 12,000 x 12 x 8.33 / 100 = Rs 11,995. For 40 such employees the total is about Rs 4.80 lakh.
Common mistakes
Using gross pay as bonus wage inflates the cost. Ignoring the ceiling interplay with minimum wage understates it when a state revises minimum wages mid-year. Skipping the month pro-rating for part-year staff and forgetting that some employees are disqualified for misconduct are also frequent. Reconcile the output against your payroll module before disbursing.
Frequently Asked Questions
Who must pay statutory bonus?
Factories and establishments with 20 or more persons on any day in the accounting year, and others notified by the government, must pay bonus to employees earning within the salary limit who worked at least 30 days in the year.
What is the minimum bonus payable?
The minimum is 8.33 percent of the bonus wage, even if the company made no profit, subject to the Act's conditions. The maximum is 20 percent where the allocable surplus supports it, under the set-on and set-off rules.
Does the Rs 7,000 ceiling apply to all?
The bonus wage is capped at the higher of Rs 7,000 or the state minimum wage for the scheduled employment. If an employee earns less than that, the actual wage is used for the calculation.
When must bonus be paid?
Within eight months of the close of the accounting year, unless the appropriate government extends it. Many plants pay before Diwali as an advance and settle the balance at year-end after accounts are finalised.
We can add a bonus provisioning report to your ERP payroll data so finance sees the accrual every month.
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