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Statutory Bonus Calculator
Statutory bonus = bonus rate (8.33% to 20%) × monthly wage, limited to the calculation ceiling (₹7,000 or the minimum wage, whichever is higher), × months worked, for employees earning up to ₹21,000 a month.
Estimate the annual statutory bonus for an eligible employee from their monthly wages, the calculation ceiling and the bonus rate.
What you enter
- Monthly basic + DA
- Eligibility limit (monthly wage)
- Wage ceiling for calculation
- Bonus rate (%)
- Months worked in the year
How the Statutory Bonus Calculator works
- The employee is eligible when monthly wages are at or below the eligibility limit.
- Bonus = bonus rate × monthly wage (limited to the calculation ceiling) × months worked.
- The rate is between 8.33% (minimum) and 20% (maximum).
Worked example: Monthly basic + DA ₹15,000, rate 8.33%, 12 months
- 15,000 is within the ₹21,000 eligibility limit, so the employee is eligible.
- Wage used = lower of 15,000 and the 7,000 ceiling = ₹7,000.
- Bonus = 7,000 × 8.33% × 12 = ₹6,997.
| Item | Value |
|---|---|
| Eligibility (monthly wage) | ₹21,000 or less |
| Calculation ceiling | ₹7,000 or minimum wage, whichever is higher |
| Minimum bonus rate | 8.33% |
| Maximum bonus rate | 20% |
Assumptions to keep in mind
- The calculation ceiling is the higher of ₹7,000 or the minimum wage for the employment, so change it if your state’s minimum wage is higher.
- Only a general estimate: allocable surplus and other conditions can change the result.
Figures last reviewed November 2026. Rates and limits change, so check the official sources below.
Frequently asked questions
Who is eligible for statutory bonus?
Employees whose monthly wages are at or below ₹21,000, who have worked the minimum number of days in the year. Check the current rule for details.
What is the minimum and maximum bonus?
The minimum is 8.33% and the maximum is 20% of the wage used for calculation.
Which wage is used if salary is above the ceiling?
The calculation wage is limited to ₹7,000 or the minimum wage for the employment, whichever is higher, even when actual wages are higher.
Sources
Let Lumos HRMS do this for every employee
Lumos HRMS calculates attendance-based pay with PF, ESI and other statutory deductions for the whole team. See payroll
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