Statutory Bonus Calculator
Calculate Statutory Bonus in Seconds
Statutory bonus is an annual or monthly incentive given to employees who receive less than ₹21,000 a month. Under the Payment of Bonus Act, 1965, it is calculated based on basic salary, dearness allowance, and minimum wage in the state.
With PayrollRabbit, you can instantly calculate statutory bonus amounts for eligible employees. Perfect for HR professionals, payroll managers, and employees wanting to know their bonus entitlement based on current regulations.
Statutory Bonus Calculation Results
Calculation Details
Monthly Statutory Bonus Amount
Calculation Formula
Statutory Bonus = Calculation Base × Bonus Percentage
Based on Basic + DA (higher than minimum wage)
Monthly Bonus = ₹0.00 × 8.33% = ₹0.00
Step-by-Step Explainer
How can you calculate the statutory bonus?
Calculate statutory bonus in 4 simple steps:
Enter Salary Details
Input employee monthly salary, which includes their Basic pay and Dearness Allowance (DA).
Set Bonus Percentage
Specify the bonus percentage offered by the employer, which must be between 8.33% and 20% as per the Payment of Bonus Act, 1965.
Provide Minimum Wage
Enter the minimum wage for your state, as the bonus calculation considers the higher of either the employees salary or the state's minimum wage.
Calculate and Review Bonus
Instantly view the calculated monthly statutory bonus.
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Frequently asked questions
Visit our full FAQ page or get in touch with Frederic, Co-Founder of PayrollRabbit.
- A statutory bonus is an annual or monthly incentive given to employees who receive less than ₹21,000 a month. It is a way of sharing the company's profits with their employees as mandated by the Payment of Bonus Act, 1965.
- The Statutory Bonus Calculator is a free tool developed by PayrollRabbit to calculate the amount of statutory bonus that an eligible employee can get in a financial year. It uses the employee's basic salary, dearness allowance, minimum wage in the state, and the statutory bonus percentage to compute the bonus.
- Employees who have been employed for more than 30 days and receive less than ₹21,000 per month are eligible to receive a statutory bonus. This applies to establishments with 20 or more employees on any day during an accounting year.
- Employers can give between 8.33% and 20% of salary (Basic + DA or minimum wage) per month to the employee as a bonus, depending on the profits they have accrued that financial year. The formula is: Statutory bonus = Higher of (Basic + DA or Minimum Wage) × Percentage of bonus. If Basic + DA is higher than minimum wage, the former is considered up to ₹7,000 for bonus calculation.
- The statutory bonus can be paid as a one-time earning or every month, as part of the employee's payroll. As a one-time earning, it is usually disbursed during the festivals in October or November, within 8 months from the close of the accounting year.
- Yes, employees can claim an advance on the statutory bonus and it can be adjusted against the actual payment when it is paid to the employee. This is subject to company policy and availability of allocable surplus.
What is a Statutory Bonus?
What is the Statutory Bonus Calculator?
Who is eligible to get a statutory bonus?
How is statutory bonus calculated?
When should the statutory bonus be disbursed to employees?
Can an employee take an advance on the statutory bonus?
Disclaimer: We have taken great care and gave our best effort to ensure the accuracy of the information provided by this Statutory Bonus Calculator. However, PayrollRabbit does not accept responsibility for any errors or omissions and makes no guarantees or warranties regarding the correctness of the results generated by this free tool. By using this tool, you agree not to hold PayrollRabbit liable for any consequences, issues, or damages arising from any inaccuracies in the results produced. We recommend double-checking all results and contact us if you have any questions, feedback or concerns.