Payment of Bonus Act 1965

Statutory Bonus Calculator: 8.33% to 20% Annual Bonus

Calculate annual employee statutory bonus under the Payment of Bonus Act 1965. Applies the statutory ₹7,000/month or state minimum wage ceiling, minimum 8.33% rate, and up to 20% maximum bonus limits.

Bonus Calculation Parameters
Payment of Bonus Act 1965
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Employees earning up to ₹21,000/month are eligible for statutory bonus.
₹
Bonus is calculated on the higher of ₹7,000 or the State minimum wage.
Employee must have worked at least 30 working days in the accounting year.
Bonus Entitlement Summary
Total Annual Bonus Payable
₹10,496
Eligibility Status: Eligible (Salary ≤ ₹21,000)
Monthly Calculation Base: ₹10,500 / month
Applicable Bonus Rate: 8.33%
Monthly Bonus Accrual: ₹874.65 / mo
Rules of Payment of Bonus Act 1965

• Eligibility Limit: Every employee earning a salary/wage up to ₹21,000 per month who has worked not less than 30 working days in that year is entitled to statutory bonus.
• Calculation Ceiling: For calculating bonus, if the salary exceeds ₹7,000 per month or the minimum wage for scheduled employment (whichever is higher), the bonus is calculated as if their salary were that ceiling amount.
• Minimum & Maximum Bonus: Minimum statutory bonus is 8.33% of the wage earned, or ₹100, whichever is higher. Maximum bonus is capped at 20% based on allocable surplus.

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