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Statutory bonus calculator

Check who is eligible and work out the annual bonus for your staff under the Code on Wages, 2019, with the limits notified in August 2026.

  • Runs on your device
  • Free, no sign-up
  • Reviewed 16 October 2026
Use the calculator How it works

Bonus settings

Bonus rate
Optional. Bonus uses ₹7,000 or this, whichever is higher.
20 or more persons employed on any day of the year?

Employees

Wages = Basic + DA + retaining allowance, plus any allowances above 50% of total pay. Paid leave, lay-off and maternity leave count as months worked.
Can you pay more than 8.33%? Allocable surplus check

Bonus above the minimum is paid from the allocable surplus: 67% of the available surplus (60% for a banking company). Available surplus is gross profit less depreciation, direct tax and other prior charges.

Type of business
Enter the available surplus to see the rate it supports for the employees above.

Bonus payable

Estimate to help you plan. New businesses get relief in their first 5 profitable years, and set-on and set-off rules can change the rate, so check with your accountant before paying.

About this tool

Chapter IV of the Code on Wages, 2019 (sections 26 to 41) replaced the Payment of Bonus Act, 1965 from 21 November 2025. Every eligible employee gets at least the minimum bonus each accounting year, whether or not the business made a profit.

Bonus = wages for bonus × months worked × bonus rate (8.33% to 20%)

  • Who is eligible: employees drawing wages of up to ₹21,000 a month who worked at least 30 days in the accounting year (April to March).
  • Wages for bonus: if wages are above ₹7,000, bonus is worked out as if the wage were ₹7,000 or the minimum wage, whichever is higher.
  • Rate: at least 8.33% (or ₹100, whichever is higher), and up to 20% when the allocable surplus allows.
  • Part-year staff get bonus in proportion to the time worked. Paid leave, lay-off, maternity leave and absence due to a work accident count as days worked.
  • Pay by bank transfer within 8 months of the year end, so by 30 November for an April to March year.

The bonus chapter applies to establishments with 20 or more persons. It does not cover some employers, such as government departments, LIC, RBI, educational institutions and non-profit hospitals. An employee dismissed for fraud, violent behaviour, theft or sabotage, or convicted of sexual harassment, loses the bonus.

How to fill it in

  1. Bonus rateChoose 8.33% (the minimum), 20% (the maximum) or any rate in between. Not sure what you can afford? Use the allocable surplus check below the calculator.
  2. Minimum wage for the jobThe monthly minimum wage that applies to the employee’s work. Leave it blank if it is ₹7,000 or less; the calculator then uses ₹7,000.
  3. Accounting year and staff countPick the year you are paying bonus for, and whether 20 or more persons worked in the business on any day of that year.
  4. Each employeeMonthly wages (Basic + DA + retaining allowance, plus any allowances above 50% of total pay), months worked in the year, and any puja, festival or advance bonus already paid for that year.

Reading the results

Total bonus to pay
The bonus still payable for all eligible employees after deducting what you already paid.
Per employee
Each employee’s bonus, or the reason they are not eligible (wages above ₹21,000 or less than 30 days worked).
Wages for bonus
The monthly figure the bonus is worked out on: actual wages up to ₹7,000, otherwise ₹7,000 or the minimum wage.
Pay by
The last date to credit the bonus to employees’ bank accounts: 8 months after the year ends.
Example: An employee earns wages of ₹15,000 a month and works all 12 months. Wages are above ₹7,000 and the minimum wage is lower, so bonus is worked out on ₹7,000: 7,000 × 12 × 8.33% = ₹7,000 at the minimum rate, or ₹16,800 at 20%.

Recent changes

  1. Bonus limits notified

    The Centre notified the ₹21,000 eligibility limit (S.O. 4711(E)) and the ₹7,000 or minimum wage ceiling for calculation (S.O. 4710(E)) under section 26, both deemed effective from 21 November 2025.

  2. Code on Wages in force

    Bonus rules moved from the Payment of Bonus Act, 1965 to Chapter IV of the Code on Wages, 2019. Bonus must now be credited to the employee’s bank account.

  3. Wider definition of wages

    Allowances above 50% of total pay are added back to wages, so some employees may now cross the ₹21,000 limit.

Sources

Official sources this tool is based on:

Further reading

Last reviewed on 16 October 2026. Results are estimates to help you plan, not legal or tax advice. Check notifications on the official portals before you file or pay.

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