Enter salary to get the exact statutory bonus payable under the Payment of Bonus Act — 8.33% minimum to 20% maximum, on the capped calculation base.
Built for payroll teams and founders closing the accounting-year bonus for Indian tech teams.
All figures are monthly, in ₹, unless noted.
Eligibility cut-off is ₹21,000/month
Statutory range is 8.33% (minimum) to 20% (maximum)
Needs at least 30 days worked in the year to qualify at all
Decides whether the bonus is a legal obligation at all
Bonus at entered percentage
₹0
Uses ₹7,000/month as the calculation ceiling. If your state's minimum wage for the role is higher than ₹7,000, use that figure instead — whichever is higher applies.
Most founders assume statutory bonus scales with actual salary, but it doesn't — the eligibility ceiling (₹21,000) and the calculation base (₹7,000) are two different numbers, so a ₹20,000 employee and a ₹7,500 employee can be owed the identical rupee amount at the same percentage. The eligibility ceiling itself only moved to ₹21,000 with a Ministry of Labour & Employment notification on 25 August 2026, applied retrospectively to 21 November 2025 — a change most payroll checklists written before that date still don't reflect. This is separate from any Diwali or performance bonus a company pays as policy, which has no statutory formula at all. Use the full and final settlement calculator if this bonus is part of a departing employee's payout. Clan's payroll plans track eligibility and the accounting-year bonus run alongside PF, ESI, and gratuity, so this doesn't have to be recomputed by hand every year.
| Component | Rule | Notes |
|---|---|---|
| Eligibility ceiling | Basic + DA up to ₹21,000/month | Raised from ₹10,000 by MoLE notification S.O. 4711(E), 25 Aug 2026, retrospective to 21 Nov 2025. |
| Calculation base | Lower of Basic + DA or ₹7,000/month (or minimum wage, if higher) | This is what the percentage is applied to — not actual salary. |
| Minimum bonus | 8.33% of the annual calculation base | Payable even in a loss-making year. |
| Maximum bonus | 20% of the annual calculation base | Depends on the employer's allocable surplus for the year. |
| Applicability | Establishments with 20+ employees | Smaller companies have no statutory obligation, though many pay a discretionary bonus anyway. |
| Payment deadline | Within 8 months of the close of the accounting year | 30 November for an April–March financial year. |
This calculator covers the statutory minimum and maximum only. It does not compute a discretionary Diwali, festival, or performance bonus, which has no fixed formula.
8.33% is the minimum, payable whether or not the employer made a profit, and 20% is the maximum, paid only if the employer's allocable surplus for the year supports it. Both rates are fixed under the Payment of Bonus Act, 1965, now Chapter VIII of the Code on Wages, 2019, in force since 21 November 2025 — the rates themselves did not change when the Act was folded into the Code.
Employees drawing Basic + DA up to ₹21,000/month, at an establishment with 20 or more employees, who worked at least 30 days in the accounting year. The Ministry of Labour & Employment notified this ₹21,000 eligibility ceiling on 25 August 2026 (S.O. 4711(E)), with retrospective effect from 21 November 2025 — up from the earlier ₹10,000 ceiling under the old Payment of Bonus Act.
On a capped calculation base of ₹7,000/month, or the applicable minimum wage for that employment if it is higher — never on the employee's actual Basic + DA, even though actual Basic + DA up to ₹21,000 is what decides eligibility in the first place. A ₹20,000/month employee and a ₹7,500/month employee can be entitled to an identical rupee bonus at the same percentage.
No. This calculator covers only the statutory bonus every eligible employer must pay by law. A Diwali bonus, festival bonus, or performance-linked payout above this amount is a separate, voluntary payment at the employer's discretion, with no fixed formula — decide that amount as company policy, not from this tool.
Within 8 months of the close of the accounting year. For a company on an April–March financial year, that means bonus for FY 2025-26 (ending 31 March 2026) is due by 30 November 2026. This 8-month deadline carried over unchanged from the Payment of Bonus Act into the Code on Wages.
This tool calculates only the statutory bonus amount and eligibility. For a complete in-hand salary breakdown including PF, ESI, and professional tax, use the salary calculator. For a departing employee's payout including any pending bonus, use the full and final settlement calculator.
