01
Enter your wage
Add your monthly Basic + DA. The calculator checks if you are within the ₹21,000 eligibility limit.
Statutory Bonus Calculator
Work out your statutory bonus under the Payment of Bonus Act.
Updated Reviewed by Sajid Hussain· Editor
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Results update in real time as you type — no submit needed.
Your numbers
Statutory Bonus bills sellers in Indian Rupee (INR), so this calculator works in INR — not your selected US Dollar ($). Every figure below matches your real Statutory Bonus statement. Localised USD marketplaces are coming soon.
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Last updated
June 14, 2026
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India Salary Tool
What Is a Statutory Bonus Calculator?
A statutory bonus calculator works out the bonus your employer owes under the Payment of Bonus Act, 1965 — now governed by the Code on Wages, 2019 — from the 8.33% minimum to the 20% maximum, and what you keep after tax.
**It applies the real eligibility rule.** The law covers employees earning up to ₹21,000 a month in Basic + DA. The calculator flags whether you are covered, so you know if the bonus is a legal right or a discretionary gift.
**It uses the ₹7,000 wage ceiling.** Bonus is computed on a capped wage of ₹7,000 a month (or the state minimum wage, if higher) — not your full salary. The calculator caps it correctly, which is why the bonus often surprises higher earners.
**It shows the 8.33%–20% range — and the tax.** The minimum 8.33% is payable even in a loss-making year; the maximum is 20%. Statutory bonus is taxable, but most covered employees fall below the tax-free limit, so the calculator shows your bonus and how much of it you actually keep.
**It reflects the new labour codes.** Since 21 November 2025 the Code on Wages, 2019 has subsumed the Payment of Bonus Act — the ₹21,000 eligibility, the wage ceiling, and the 8.33%–20% range carry over unchanged, so the figures here stay current.
Quick facts
- Governing law
- Bonus Act → Code on Wages
- Eligibility
- Basic + DA ≤ ₹21,000/mo
- Wage ceiling
- ₹7,000 (or state min wage)
- Minimum
- 8.33% (₹6,997/yr)
- Maximum
- 20% (₹16,800/yr)
- Tax
- Often nil for covered staff
How It Works
Calculate Your Statutory Bonus in Three Steps
02
Set the rate and months
Pick the bonus percentage (8.33%–20%) and the months you worked this year.
03
See your bonus
See the bonus payable, the 8.33% minimum and 20% maximum, and the capped wage used.
Steps to use the Statutory Bonus Calculator: Enter your wage, Set the rate and months, See your bonus.
The Formula
How Statutory Bonus Is Worked Out
01
Bonus wage
Wage = min(Basic+DA, max(₹7,000, state min wage))
The bonus is computed on a capped wage — ₹7,000 a month, or the state minimum wage if higher — not your full salary.
Example: ₹18,000 salary → capped at ₹7,000
02
Annual bonus
Bonus = wage × 12 × bonus% × (months ÷ 12)
The capped monthly wage over the year, times the bonus percentage, pro-rated for the months worked.
Example: ₹7,000 × 12 × 8.33% = ₹6,997
03
The range (with the ₹100 floor)
Min = max(8.33%, ₹100) · Max 20%
The minimum is 8.33% of the bonus wage or ₹100, whichever is higher — payable even in a loss year. The maximum is 20%, depending on the employer's allocable surplus.
Example: ₹6,997 (min) to ₹16,800 (max)
04
Tax on the bonus
Tax = bonus × slab% × 1.04
Statutory bonus is salary income, taxed at your slab plus 4% cess. Net = bonus − tax. Most covered employees are below the tax-free limit, so the tax is often nil.
Example: ₹6,997 × 0% = ₹0 tax → ₹6,997 net
Worked Example
Step-by-Step Walkthrough (₹18,000 Basic+DA, 8.33%)
Currency note: the example below uses a benchmark scenario priced in Indian Rupee (INR). Values are converted to US Dollar (USD) at the latest exchange rate so you can compare against your own numbers.
Scenario
An employee earning $18,000.00 a month (Basic + DA), with a 8.33% bonus for 12 months.
1
Step 1 · Capped wage
The $18,000.00 wage is capped at the ₹7,000 ceiling for the bonus.
Wage used = $7,000.00
2
Step 2 · Bonus at 8.33%
The capped wage over 12 months, times 8.33%.
Bonus = $6,997.00
3
Step 3 · The ceiling
At the 20% maximum, the bonus would be higher.
Maximum = $16,800.00
The takeaway
Earning $18,000.00 a month, the bonus is calculated on a capped $7,000.00 — giving $6,997.00 at 8.33%, up to $16,800.00 at the 20% maximum. The cap is why two colleagues on very different salaries get the same statutory bonus — and because covered employees earn under the tax-free limit, both usually keep it in full.
On the ₹7,000 ceiling
Statutory Bonus by Rate (₹7,000 wage, full year)
| Metric | Poor | Average | Good | Excellent |
|---|---|---|---|---|
Minimum (8.33%) Payable even in a loss year | ₹6,997 | |||
Mid (12%) Depends on allocable surplus | ₹10,080 | |||
Maximum (20%) Cap under the Act | ₹16,800 |
Comparison
Calcrux vs Generic Bonus Calculators
| Feature | Calcrux (Free) | Generic | Manual |
|---|---|---|---|
| ₹21,000 eligibility check | |||
| ₹7,000 / state min-wage ceiling | |||
| Shows 8.33% min and 20% max | |||
| Tax on bonus → net in hand | |||
| Updated for Code on Wages, 2019 | |||
| Pro-rates for part years | |||
| Flags discretionary (ex-gratia) | |||
| Free, no sign-up required |
Common Mistakes
Statutory Bonus Mistakes to Avoid
Calculating bonus on full salary
Why it matters
The bonus wage is capped at ₹7,000 (or the state minimum wage), so using full salary massively overstates the bonus.
Fix
Enter your real wage; the calculator caps it. The bonus is based on the capped figure, not your full pay.
Assuming everyone is eligible
Why it matters
Employees earning over ₹21,000 a month in Basic + DA are not covered — any bonus is discretionary.
Fix
Check the eligibility status. Above the limit, treat a bonus as ex-gratia, not a legal right.
Ignoring the state minimum wage
Why it matters
If your state minimum wage exceeds ₹7,000, the higher figure is the ceiling — and the bonus is larger.
Fix
Enter your state minimum wage if it is above ₹7,000 for an accurate bonus.
Expecting more for higher pay
Why it matters
Because of the cap, a higher salary above the ceiling does not increase the statutory bonus.
Fix
Understand the cap — the statutory bonus is the same for everyone above the ceiling at a given percentage.
Assuming the bonus is always tax-free
Why it matters
Statutory bonus is salary income. If your total income crosses the tax-free limit, the bonus is taxed at your slab — most covered employees are below it, but higher earners are not.
Fix
Set your tax slab in the calculator to see the tax and net in hand; it is zero if you are below the tax-free limit.
Pro Tips
Understand Your Statutory Bonus
Know the cap is the equaliser
The ₹7,000 ceiling means the statutory bonus is the same for most covered employees — your salary above it does not change it.
8.33% is guaranteed
Even if the company makes a loss, the 8.33% minimum bonus must be paid. It is a floor, not a maybe.
Check your state minimum wage
Many states set a minimum wage above ₹7,000. If yours does, the bonus is calculated on that higher figure.
Expect it before Diwali
Bonus must be paid within 8 months of the accounting year-end, so it often arrives around the festive season.
It stacks with performance bonus
Statutory bonus is separate from any incentive your employer pays — you can receive both.
Your bonus is often tax-free
Covered employees usually earn below the income-tax-free limit, so the bonus is received in full. Set your slab only if your total income is taxable.
Who Uses This
Who Uses This Statutory Bonus Calculator
The Statutory Bonus Calculator works across every stage of the workflow.
Factory and shop-floor employees
A worker covered by the Act checks the bonus due before the festive payout.
Junior salaried staff
Someone earning under ₹21,000 works out their 8.33%–20% statutory bonus.
HR and payroll teams
HR computes the bonus liability for eligible employees on the capped wage.
Small business owners
An employer estimates the statutory bonus payable to staff for the year.
Employees checking eligibility
Someone near the ₹21,000 limit checks whether they are covered by the Act.
Glossary
Key Statutory Bonus Terms
Every important term you'll encounter in this calculator and the broader topic.
- Payment of Bonus Act, 1965
- The law requiring covered employers to pay an annual bonus of 8.33% to 20% to eligible employees.
- Eligibility Limit
- The ₹21,000 monthly Basic + DA ceiling below which an employee is covered by the Act.
- Bonus Wage Ceiling
- The ₹7,000 (or higher state minimum wage) monthly cap on which the bonus is calculated.
- Minimum Bonus
- 8.33% of the bonus wage or ₹100, whichever is higher — the least an employer must pay, due even in a loss year.
- Maximum Bonus
- 20% of the bonus wage — the most payable under the Act, in a high-profit year.
- Allocable Surplus
- The share of the employer's profit available for bonus, which decides the rate between 8.33% and 20%.
- Code on Wages, 2019
- The labour code that, from 21 November 2025, governs statutory bonus in place of the Payment of Bonus Act — carrying over the ₹21,000 eligibility and 8.33%–20% range.
Help & answers
Frequently asked questions
Everything you need to know about how the Statutory Bonus Calculator works.
01What is a statutory bonus calculator?
A statutory bonus calculator works out the bonus payable under the Payment of Bonus Act, 1965. You enter your monthly Basic + DA, the bonus rate and months worked; it returns the bonus, the 8.33% minimum and 20% maximum, and the capped wage used.
02How is statutory bonus calculated?
Bonus = bonus wage × 12 × bonus%, where the bonus wage is capped at ₹7,000 a month (or the state minimum wage if higher). At 8.33%, the bonus on the ₹7,000 ceiling is ₹6,997 a year; at 20% it is ₹16,800.
03Who is eligible for statutory bonus?
Employees earning monthly wages (Basic + DA) up to ₹21,000 and who have worked at least 30 days in the year are covered. Above ₹21,000, any bonus is at the employer's discretion, not a statutory right.
04What is the minimum and maximum statutory bonus?
The minimum is 8.33% of the bonus wage and the maximum is 20%. The 8.33% minimum must be paid even if the company makes a loss; the exact figure between the two depends on the allocable surplus (profit).
05What is the ₹7,000 wage ceiling?
Even if you earn more, the bonus is calculated on a wage capped at ₹7,000 a month, or the state minimum wage for your work if that is higher. So a higher salary does not always mean a higher statutory bonus.
06How much bonus on a ₹7,000 wage ceiling?
On the ₹7,000 ceiling, the annual bonus wage is ₹84,000. At 8.33% that is ₹6,997 for the year; at the 20% maximum it is ₹16,800. Most employers pay somewhere between based on profit.
07Is the statutory bonus taxable?
Yes, it is salary income taxed at your slab. But most covered employees (earning up to ₹21,000 a month) fall below the tax-free limit, so the bonus is often received in full. Set your slab to see the tax and net in hand.
08How much tax is deducted on statutory bonus?
Tax = bonus × your slab rate × 1.04 (4% cess). At a 20% slab, the tax on a ₹6,997 bonus is about ₹1,455. If your total income is below the tax-free limit, no tax applies and you keep the full bonus.
09Does the new labour code change the statutory bonus?
No, the rules continue. Since 21 November 2025 the Code on Wages, 2019 governs statutory bonus instead of the Payment of Bonus Act, but the ₹21,000 eligibility, the wage ceiling, and the 8.33%–20% range carry over unchanged until new figures are notified.
10What is the ₹100 minimum statutory bonus?
The minimum bonus is 8.33% of the bonus wage or ₹100, whichever is higher. On the ₹7,000 ceiling the 8.33% figure (₹6,997) is far above ₹100, so the floor only matters at very low wages or short part years.
11Do I get bonus if I worked only part of the year?
Yes, pro-rata, as long as you worked at least 30 days. Set the months worked in the calculator and the bonus is reduced proportionally.
12Does a higher salary always mean a higher bonus?
No. Because the bonus wage is capped at ₹7,000 (or the state minimum wage), everyone above that ceiling who is covered gets the same statutory bonus for a given percentage. The cap is the great equaliser.
13When is statutory bonus paid?
It must be paid within 8 months of the close of the accounting year — so usually before Diwali for many employers, which is why it is often called the Diwali bonus.
14Is statutory bonus the same as a performance bonus?
No. Statutory bonus is a legal entitlement under the Payment of Bonus Act based on wages and profit. A performance or incentive bonus is a separate, discretionary payment your employer may give on top.
15Is this statutory bonus calculator free and accurate?
Yes — it is free and uses the Payment of Bonus Act rules: the ₹21,000 eligibility limit, the ₹7,000 calculation ceiling, and the 8.33%–20% range. Set your state minimum wage if it is higher than ₹7,000 for an exact figure.
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