Bonus Calculator

Statutory Bonus (Payment of Bonus Act, 1965)

Monthly Basic + DA Salary (₹)

Working Days in Year

Profit Allocable for Bonus (%)

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Annual Salary₹0

Minimum Statutory Bonus (8.33%)₹0

Maximum Possible Bonus (20%)₹0

Actual Bonus (Based on Profit %)₹0

Performance Bonus

Annual CTC (₹)

Target Achievement (%)

Bonus % on CTC

Months Worked in Year

Annual CTC₹0

Bonus % on CTC0%

Achievement Adjusted0%

Performance Bonus (Full Year)₹0

Pro-rated (Months Worked)₹0

TDS on Bonus (30%)₹0

Ex-Gratia / Festival Bonus

Monthly Salary (₹)

Months to Pay

Monthly Salary₹0

Total Ex-Gratia Bonus₹0

About Bonus

Abonusis additional compensation paid to employees over their regular salary. In India, bonus is governed by thePayment of Bonus Act, 1965for statutory bonus, while performance and ex-gratia bonuses are discretionary.

Types of Bonus:

Statutory Bonus:Mandatory under the Bonus Act (8.33% minimum to 20% maximum)
Performance Bonus:Based on company/individual performance targets
Ex-Gratia Bonus:Festival or discretionary bonus paid at employer's discretion

Statutory Bonus Eligibility:

Monthly salary ≤ ₹21,000/month
Calculated on ₹7,000 or minimum wage (whichever is higher)
Minimum 30 days worked in the bonus period
Applied when company has allocated profit for bonus

Payment Timeline:

Bonus must be paid within 8 months of the end of the financial year (by October 31 for FY ending March 31).

Frequently Asked Questions

Is bonus mandatory?+

Statutory bonus is mandatory under the Payment of Bonus Act if the company meets the criteria and has allocable profit. However, the minimum bonus is 8.33% of annual salary. Performance and ex-gratia bonuses are discretionary and depend on company policy. Some employers may not provide bonus in loss-making years.

Who is eligible for bonus?+

Employees earning ≤ ₹21,000/month are eligible for statutory bonus. Eligibility requires 30+ days of work in the bonus period. Employees who worked for the full year get higher bonus; those who worked partial periods get pro-rated bonus. Certain categories like trainees may have different rules.

How is statutory bonus calculated?+

Statutory bonus = (Salary × 15 × Working Days Worked) / 260. The minimum is 8.33% of annual salary (or ₹100 × 12, whichever is higher), and maximum is 20% of annual salary. For part-time workers, calculation is adjusted based on working days. Bonus is calculated on ₹7,000 or minimum wage, whichever is higher.

Is bonus taxable?+

Yes, bonus is generally taxable as income. However, up to ₹3,000 of bonus may be exempt in some cases (which is rarely applicable). Statutory bonus, performance bonus, and ex-gratia bonus are all taxable at your applicable income tax slab. TDS is deducted if combined monthly salary plus bonus exceeds certain limits.