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Bonus Calculator India 2026 - Payment of Bonus Act Estimator

Compute statutory bonus under Sections 10 and 11 of the Payment of Bonus Act, 1965. Includes Rs 21,000 wage ceiling, Rs 7,000 calculation cap, and minimum / maximum range.

Step 1 - Inputs

Your bonus inputs

Step 2 - Result

Annual Bonus Computation

Eligibility

Eligible

Annual Bonus Payable

Rs 0

Calculation wage x months x rate

Estimate based on statutory rules. Payment due within 8 months of accounting-year close under Section 19.

Formula Logic

How Indian Bonus Calculation Works

Wage Ceiling Rs 21,000

Only employees earning up to Rs 21,000 per month qualify for statutory bonus under Section 2(13).

30-Day Minimum

Employee must have worked at least 30 days in the accounting year under Section 8.

Minimum 8.33%

Floor rate under Section 10. Applies even when employer has no allocable surplus.

Maximum 20%

Ceiling rate under Section 11. Rate above floor depends on allocable surplus.

Calc Cap Rs 7,000

Bonus computed on the higher of Rs 7,000 or state minimum wage under Section 12.

8-Month Deadline

Bonus must be paid within 8 months from accounting-year close under Section 19.

Statutory Forms

Bonus Registers and Returns You Must Maintain

Form A

Computation of Allocable Surplus

Rule 4 of Payment of Bonus Rules, 1975

Form B

Set-On and Set-Off Register

Rule 4 of Payment of Bonus Rules, 1975

Form C

Register of Bonus Paid to Employees

Rule 4 of Payment of Bonus Rules, 1975

Form D

Annual Return of Bonus Paid

Rule 5 of Payment of Bonus Rules, 1975

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Bonus Calculator FAQ

Who is eligible for bonus under Indian law?
An employee earning wages up to Rs 21,000 per month and who worked at least 30 days in the accounting year is eligible under Section 8 of the Payment of Bonus Act, 1965. The Act applies to factories and establishments with 20 or more employees.
What is the minimum and maximum bonus rate?
Minimum bonus is 8.33 percent of wages or Rs 100, whichever is higher, under Section 10. Maximum bonus is 20 percent of wages under Section 11 of the Payment of Bonus Act, 1965.
How is bonus calculated on wages above Rs 21,000?
Employees earning above Rs 21,000 are not eligible for statutory bonus under Section 2(13). Employers may pay ex-gratia bonus by company policy. Such ex-gratia falls outside the Bonus Act.
What is the bonus calculation wage cap?
Under Section 12, the calculation wage is the higher of Rs 7,000 per month or the state minimum wage for scheduled employment. Even if actual wages are higher, bonus is computed on the capped wage.
When must bonus be paid?
Bonus must be paid within 8 months from the close of the accounting year under Section 19 of the Payment of Bonus Act, 1965. The Government may extend the period in special cases, but cannot extend beyond 2 years.
Is bonus taxable in India?
Yes. Bonus is treated as part of salary under Section 17 of the Income Tax Act, 1961 and is taxable in the year of receipt. TDS under Section 192 applies on the projected annual salary including bonus.

Pay Bonus Right, On Time

factoHR India auto-checks eligibility, computes bonus at the right rate, and generates Form A, B, C, D within 8 months.

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