Calculate the annual statutory bonus under the Payment of Bonus Act, 1965. Enter monthly basic + DA and the bonus rate to see the yearly bonus, with eligibility and the ₹7,000 ceiling applied.
The Payment of Bonus Act, 1965 requires eligible establishments to pay an annual bonus to workers earning up to ₹21,000 a month. The bonus is a percentage of the year's wages, between a floor of 8.33% and a ceiling of 20%.
If basic + DA is above ₹7,000 but the worker is still eligible (up to ₹21,000), the bonus is worked out on ₹7,000 (or the applicable minimum wage), not the full pay. Workers above ₹21,000 are outside the Act, though many employers still pay an ex-gratia bonus.
Bonus is calculated on basic plus DA, capped at ₹7,000 per month (or the minimum wage if higher), multiplied by the months worked and a rate between 8.33% and 20%. The minimum annual bonus is 8.33% of the yearly bonus wage.
An employee whose basic plus DA is ₹21,000 per month or less, and who worked at least 30 days in the accounting year, is eligible.
The minimum is 8.33% and the maximum is 20% of the bonus wage. The exact rate depends on the employer's allocable surplus for the year.
The Act caps the bonus calculation wage at ₹7,000 per month, or the minimum wage for the scheduled employment if that is higher, even for eligible workers earning more.
Bonus eligibility and the ₹7,000-or-minimum-wage ceiling vary worker by worker. ZeniaHR computes each worker's statutory bonus automatically alongside PF, ESI and gratuity.
ZeniaHR checks eligibility, applies the ₹7,000-or-minimum-wage ceiling and computes statutory bonus for thousands of contract workers automatically, alongside PF, ESI and gratuity. Built only for manpower and staffing companies.
This calculator is a guide based on the standard Payment of Bonus Act, 1965 rules and does not constitute legal advice. The exact bonus rate depends on the employer's allocable surplus, and the calculation ceiling may be the minimum wage where it exceeds ₹7,000.