Skip to content
CalcMate

Bonus Calculator

Statutory bonus is now paid under the Code on Wages, 2019, which replaced the Payment of Bonus Act, 1965. Enter your monthly basic plus DA and the months you worked to see whether you qualify and how much the bonus comes to, or switch to a performance bonus to see what is left after tax.

On this page

Calculator and results

On a monthly wage of ₹15,000 for 12 months, statutory bonus at 8.33% comes to ₹7,000, worked out on ₹7,000 a month because the wage is above the ₹7,000 calculation ceiling. The range is ₹7,000 at 8.33% to ₹16,800 at 20%.

₹
months

At least 30 days' work is needed. Paid leave, lay-off and maternity leave count as days worked.

%

At least 8.33% and at most 20%. Above the minimum depends on the employer's allocable surplus or an agreement.

₹

Set by government notification under the Code. ₹21,000 was the limit under the old Payment of Bonus Act; check the notification that applies to you.

₹

If this is above ₹7,000, bonus on wages above the ceiling is worked out on it instead. Leave at 0 if you do not know it.

Bonus for the year

₹7,000

at 8.33%

Eligible

Yes

wage within ₹21,000

Wage used per month

₹7,000

calculation ceiling applied

Wages earned in the year

₹1,80,000

₹15,000 x 12 months

Minimum (8.33%)

₹7,000

payable even without profit

Maximum (20%)

₹16,800

the cap under the Code

How this was worked out

₹7,000 a month x 12 months = ₹84,000; at 8.33% that is ₹7,000.

The ₹7,000 ceiling is the Central Government's (S.O. 4710(E)). A state government can notify its own figures for establishments in the state sphere.

Saved scenarios stay in this browser only. No sign-up.

Statutory bonus

₹7,000

at 8.33%
What it is:
A calculator for statutory bonus under the Code on Wages, 2019, and for the take-home of a performance bonus.
What it calculates:
Whether an employee qualifies for statutory bonus, the bonus for the year at the rate chosen, and the income tax and take-home on a CTC or performance bonus.

Key Assumptions

  • Wages means basic pay plus dearness allowance, the same each month.
  • A month worked counts as thirty days; leave with pay, lay-off and maternity leave count as days worked under the Code.
  • The eligibility limit and minimum wage are the figures you enter.
  • Performance bonus is taxed as salary, with the standard deduction and no other income.

How does the Bonus Calculator work?

Statutory bonus is paid to an employee whose wages are within a monthly limit set by notification and who has worked at least 30 days in the accounting year (April to March). The limit is entered by you: check the notification that applies to your establishment.

If your monthly wage is above ₹7,000, the bonus is worked out as if it were ₹7,000 or the minimum wage for your job, whichever is higher. This is the Central Government's ceiling under S.O. 4710(E); a state can set its own for establishments in the state sphere.

The bonus is that monthly figure times the months worked, times the rate. The rate is at least 8.33% (eight and one-third per cent) and at most 20%; anything above the minimum depends on the employer's allocable surplus or an agreement. The minimum is also never below ₹100 a year, reduced in proportion for a part year.

For a performance or CTC bonus, the calculator adds the bonus to your salary and works out the extra income tax under the regime you pick, for FY 2026-27 (tax year 2026-27). The difference is the tax on the bonus, and the bonus less that tax is what you take home.

Bonus Calculator formula

Bonus = max(W x m x r, 100 x m / 12); W = wage if wage <= C, else max(C, MW)

W
= monthly wage the bonus is calculated on
m
= months worked in the accounting year
r
= bonus rate, between 8.33% and 20%
C
= calculation ceiling, ₹7,000 a month
MW
= minimum wage per month fixed for the employment

Performance bonus: tax on bonus = tax(salary + bonus) - tax(salary), cess and any surcharge included.

Bonus Calculator: worked example

Statutory bonus on a ₹15,000 monthly wage for a full year, and a ₹2,00,000 performance bonus on a ₹15,00,000 salary

Wages earned in the year
₹1,80,000
Wage used per month (above the ₹7,000 ceiling)
₹7,000
Statutory bonus at 8.33%
₹7,000
Statutory bonus at 20%
₹16,800
Performance bonus: extra income tax (new regime)
₹32,500
Performance bonus in hand (16.25% tax)
₹1,67,500

Bonus Calculator: frequently asked questions

Who gets statutory bonus in India?
Under section 26 of the Code on Wages, 2019, an employee whose wages do not exceed the monthly limit notified by the appropriate government and who has worked at least 30 days in the accounting year must be paid an annual bonus. The minimum is 8.33% of wages earned or ₹100, whichever is higher, whether or not the employer made a profit.
What is the maximum bonus?
20% of the wages earned in the year. Bonus above the 8.33% minimum comes from the employer's allocable surplus, or from an agreement linked to production or productivity, but the total cannot go above 20%.
Why is my bonus worked out on ₹7,000 when I earn more?
The Code lets the government set a calculation ceiling. The Central Government's notification S.O. 4710(E) of 25 August 2026, effective from 21 November 2025, says that where wages are above ₹7,000 a month, bonus is calculated as if the wage were ₹7,000 or the minimum wage fixed by the Central Government, whichever is higher. So on a ₹15,000 wage, 8.33% for a full year is about ₹7,000, not ₹15,000.
What is the wage limit to be eligible?
The Code leaves it to the appropriate government to notify. Under the old Payment of Bonus Act it was ₹21,000 a month, and that is the starting value in the calculator, but check the current notification for your establishment and change the figure if it differs.
Who can lose the bonus?
Section 29 of the Code disqualifies an employee dismissed for fraud, riotous or violent behaviour on the premises, theft, misappropriation or sabotage of the establishment's property, or conviction for sexual harassment.
How is a performance bonus taxed?
It is salary, so it is taxed at your slab rate in the year it is paid, and TDS is usually deducted from it. In the new regime, income up to ₹12 lakh after the standard deduction has no tax because of the rebate, so a bonus that keeps you below that line costs no tax, while one that takes you just above it gets marginal relief.

Get CalcMate Money Tips

Tax-saving tips before every deadline.

  • A money tip you can use the same day: saving, tax, loans or investing.
  • FD, savings and loan rate changes from our verified data.
  • New calculators and guides.
What interests you? (optional)

We never sell or share your email. See the privacy policy or what's in the emails.

Authoritative Sources

Report a problem with this calculator

Reviewed by Pradipta Ray, MBA (Finance) · Updated