About the Bonus Calculator
What is the Bonus Calculator?
Employees earning up to ₹21,000 a month are entitled to a statutory bonus of 8.33% to 20% of their wages under the Payment of Bonus Act. This bonus calculator applies the calculation ceiling of ₹7,000 a month or the state minimum wage, whichever is higher.
Switch to performance bonus mode to calculate a bonus as a percentage of CTC and the tax on it.
How to use the Bonus Calculator
- Bonus Type (sample: Statutory bonus (Payment of Bonus Act))
- Monthly Basic + DA (₹) (sample: 18,000)
- Statutory Bonus Rate (%) (sample: 8.33)
- Calculation Ceiling – ₹7,000 or the State Minimum Wage if Higher (₹) (sample: 7,000)
- Months Worked in the Year (sample: 12)
- Annual CTC (₹, performance bonus) (sample: 12,00,000)
- Performance Bonus (% of CTC) (sample: 10)
- Your Income Tax Slab (sample: 30%)
- Press Calculate Bonus (results also refresh as you type). The result card shows the Bonus Payable, along with Eligibility, Salary used for calculation, Minimum bonus (8.33%) and Maximum bonus (20%).
Formula used
Statutory bonus = min(Wages, Ceiling) × Months worked × Bonus %
- Ceiling = ₹7,000 a month or the scheduled minimum wage, if higher
- Rate = minimum 8.33%, maximum 20% of wages
Bonus must be paid within eight months of the end of the accounting year.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Bonus Type | Statutory bonus (Payment of Bonus Act) |
| Monthly Basic + DA (₹) | 18,000 |
| Statutory Bonus Rate (%) | 8.33 |
| Calculation Ceiling – ₹7,000 or the State Minimum Wage if Higher (₹) | 7,000 |
| Months Worked in the Year | 12 |
| Annual CTC (₹, performance bonus) | 12,00,000 |
| Performance Bonus (% of CTC) | 10 |
| Your Income Tax Slab | 30% |
| Result | Value |
|---|---|
| Bonus Payable | ₹6,997 |
| Eligibility | Eligible – wages up to ₹21,000 a month |
| Salary used for calculation | ₹7,000 |
| Minimum bonus (8.33%) | ₹6,997 |
| Maximum bonus (20%) | ₹16,800 |
Tips for using the Bonus Calculator
- Employees must have worked at least 30 days in the year to qualify.
- Performance bonuses are fully taxable in the year received.