Bonus Act Eligibility Checker
Check if you qualify for statutory bonus and calculate the amount live — ₹21,000 eligibility ceiling, ₹7,000 calculation cap, 8.33%–20% bonus.
Bonus calculation breakdown
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Disclaimer: Indicative estimate under the Payment of Bonus Act, 1965. Actual bonus may vary with allocable surplus, set-on/set-off and the applicable minimum wage. Consult a professional before relying on these figures.
Statutory bonus at a glance
The Payment of Bonus Act, 1965 mandates an annual bonus to employees in covered establishments. An employee drawing wages up to ₹21,000/month who worked at least 30 days in the accounting year is eligible — but the bonus itself is computed on wages capped at ₹7,000/month (or the applicable minimum wage, whichever is higher).
Eligibility & bonus rules
Two things decide the bonus: whether the employee is eligible, and how much is payable. Coverage and eligibility come first; the calculation cap then limits the amount.
| Establishment coverage | ≥ 20 employees |
| Wage ceiling | ≤ ₹21,000/mo |
| Minimum service | ≥ 30 days |
| Employer type | Factory / establishment |
| Calculation cap | ₹7,000/mo |
| Minimum bonus | 8.33% |
| Maximum bonus | 20% |
| Payment deadline | Within 8 months |
Worked example
An employee draws ₹18,000/month (Basic + DA), worked all 12 months, and the employer declared the minimum 8.33% bonus in a covered establishment.
Key terms explained
₹21,000 eligibility ceiling
Only employees drawing wages (Basic + DA) up to ₹21,000 per month are eligible for statutory bonus. Those earning above this ceiling are outside the Act's cover.
₹7,000 calculation cap
Even if actual wages are higher, bonus is computed on wages capped at ₹7,000/month — or the applicable minimum wage for the scheduled employment, whichever is higher.
8.33% – 20% bonus
The minimum bonus is 8.33% of the capped annual wage even if there is no profit; the maximum is 20%, payable out of the allocable surplus.
30-day rule & 8-month deadline
An employee must have worked at least 30 days in the accounting year to qualify, and the bonus must be paid within 8 months of the close of that year.
Who is eligible for statutory bonus?
An employee drawing wages up to ₹21,000 a month who has worked in the establishment for at least 30 working days in the accounting year. The Payment of Bonus Act, 1965 applies to factories and to establishments employing 20 or more persons.
How much bonus must be paid?
A minimum of 8.33% of wages and a maximum of 20%, depending on the allocable surplus. For employees earning more than ₹7,000 a month, bonus is computed on ₹7,000 or the minimum wage for the scheduled employment, whichever is higher.
Is bonus payable in a loss-making year?
Yes. The 8.33% minimum bonus is payable regardless of profit or loss, unless the establishment is in its first five years and has not derived profit — a limited exemption for newly set-up establishments.
By when must bonus be paid?
Within 8 months of the close of the accounting year, so normally by 30 November for a year ending 31 March. Form D is filed with the labour authority within 30 days of payment.
Can an employee be disqualified from bonus?
Yes. Section 9 disqualifies an employee dismissed for fraud, riotous or violent conduct on the premises, or theft, misappropriation or sabotage of the establishment's property.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.