Statutory Bonus Calculator
Easily calculate the bonus payable to employees under the Payment of Bonus Act, 1965 with our Statutory Bonus Calculator. This tool helps employers and employees determine the minimum and maximum bonus entitlement based on salary and company profits, ensuring compliance with Indian labor laws. Stay informed and ensure accurate bonus payouts effortlessly.
| Monthly Salary | Bonus Percentage | Minimum Wage | Calculated Bonus Amount |
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About Statutory Bonus calculator
Find answers to common questions about the Statutory bonus and how our Statutory bonus Calculator can help you plan your retirement.
A statutory bonus is an annual or monthly incentive provided to employees earning less than ₹21,000 per month, serving as a means to share the company's profits with its workforce.
The Statutory Bonus Calculator, a complimentary tool developed by HRStop, determines the statutory bonus amount for eligible employees in a financial year. It factors in the employee's basic and dearness allowance, state minimum wage, and the statutory bonus percentage.
Employees with more than 30 days of service and a monthly income below ₹21,000 are eligible to receive a statutory bonus.
- Employers may allocate between 8.33% and 20% of the salary (Basic + DA or minimum wage) monthly to the employee as a bonus, contingent on the profits accrued in the financial year.
- The formula for statutory bonus calculation is
Statutory bonus = Salary * Percentage of bonus wage. -
For example, if an employee earns ₹15,000 monthly with a basic pay of ₹7,500. The minimum wage in the employee's state is ₹6000:
- The minimum statutory bonus is
7000 * 8.33/100 = ₹583. - The maximum statutory bonus is
7000 * 20/100 = ₹1400.
- The minimum statutory bonus is
Employers can choose to pay the statutory bonus as a one-time earning or incorporate it into the monthly payroll. If disbursed as a one-time earning, it typically occurs during festivals in October or November.
Certainly, employees have the option to claim an advance on the statutory bonus, and the advanced amount can be adjusted against the actual payment upon disbursement.
Yes, employers have the flexibility to include the bonus in the monthly salary of the employees.