Statutory Bonus Calculator

Basic + DA amount paid every month:

Minimum Wage amount as per state:

Bonus Percentage:

Month	Basic + DA	Min. Wage	Total Days	Payable Days	Qualify Wage	Bonus Amount
Total			0	0	₹0.00	₹0.00

Total Annual Statutory Bonus ₹0.00

Introduction

The Statutory Bonus Calculator is a powerful tool designed to help employers calculate bonus amounts according to the Payment of Bonus Act, 1965. This user-friendly calculator simplifies the complex process of determining statutory bonus payments for eligible employees.

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Accurate Calculations

Automatically calculates bonus amounts based on current statutory rules and qualifying wages.

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Real-time Updates

Instantly reflects changes to values with automatic calculations as you input data.

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Month-by-Month View

Provides detailed month-wise breakdown of bonus calculations for a comprehensive analysis.

Getting Started

Follow these simple steps to calculate statutory bonus amounts for your employees:

Enter Basic + DA Amount

Input the Basic Salary plus Dearness Allowance (DA) amount that is paid to the employee every month. This is the salary component eligible for bonus calculations.

Enter Minimum Wage

Input the Minimum Wage amount as specified by the state government regulations. This ensures compliance with minimum wage requirements for bonus calculations.

Set Bonus Percentage

Enter the applicable bonus percentage. By default, this is set to 8.33%, which is the minimum statutory bonus percentage. You can adjust this up to 20% based on your company’s policy or profitability.

Adjust Monthly Data (if needed)

The calculator automatically populates all months with the same Basic + DA and Minimum Wage values. You can individually modify any month’s values if there were changes during the year. You can also adjust the Total Days and Payable Days for each month if the employee was absent or joined/left during the year.

View Results

The calculator automatically processes the data and displays the qualifying wage, bonus amount for each month, and the total annual bonus amount at the bottom of the page.

Understanding Calculations

Key Concepts

The Statutory Bonus Calculator uses the following key concepts to determine bonus amounts:

Qualifying Wage Determination

The calculator first determines the qualifying wage based on these rules:

If Minimum Wage is less than ₹7,000 and Basic + DA is greater than ₹7,000, then Qualifying Wage = ₹7,000 (ceiling)
If Minimum Wage is less than ₹7,000 and Basic + DA is less than Minimum Wage, then Qualifying Wage = Minimum Wage
If Minimum Wage is less than ₹7,000 and Basic + DA is between Minimum Wage and ₹7,000, then Qualifying Wage = Basic + DA

Bonus Amount Calculation

The bonus amount for each month is calculated using this formula:

Bonus Amount = (Qualifying Wage × Bonus Percentage ÷ 100) × (Payable Days ÷ Total Days)

This pro-rates the bonus based on the actual days worked by the employee.

The calculator automatically adjusts calculations to comply with the Payment of Bonus Act, which stipulates that the maximum qualifying wage for bonus calculation is capped at ₹7,000 (or as amended by the current regulations).

Tips & Best Practices

Keep records updated: Always ensure that the employee’s Basic + DA amounts are current for each month.
Verify minimum wage: Regularly check and update minimum wage values as per the latest notifications from your state labor department.
Track attendance: Accurately record Total Days and Payable Days for part-time employees or those who joined/left during the calculation period.
Consider festival bonus: Remember that statutory bonus is different from festival or performance bonus. Use the appropriate percentage for calculation as per company policy.
Reset before new calculations: Use the Reset button before starting calculations for a new employee to clear all previous data.

Glossary of Terms

Basic + DA

The sum of Basic Salary and Dearness Allowance, which forms the basis for bonus calculation.

Minimum Wage

The legally mandated minimum amount that must be paid to employees as specified by state or central government.

Total Days

The total number of calendar days in a month.

Payable Days

The actual number of days for which salary was paid, excluding unpaid leaves or absences.

Qualifying Wage

The wage amount that qualifies for bonus calculation, subject to minimum wage regulations and ceiling limits.

Bonus Amount

The calculated bonus for each month based on qualifying wage, bonus percentage, and attendance.

Frequently Asked Questions

Why is my qualifying wage capped at ₹7,000 even though I pay more?

As per the Payment of Bonus Act, the maximum salary for bonus calculation is capped at ₹7,000 (or the current ceiling amount as per amendments). Even if an employee’s actual salary is higher, bonus is calculated on this capped amount.

Do I need to calculate bonus for all 12 months?

Yes, the statutory bonus is calculated for the full financial year (April to March). For employees who worked for partial periods, adjust the Payable Days accordingly.

What is the minimum percentage of bonus that must be paid?

As per the Payment of Bonus Act, the minimum bonus payable is 8.33% of the qualifying wage. This can be increased up to 20% based on the employer’s profitability.

Are all employees eligible for statutory bonus?

No, employees earning wages or salaries exceeding the threshold (currently ₹21,000 per month) are not eligible for statutory bonus. The calculator does not check eligibility and assumes that the employee is eligible.

When should statutory bonus be paid?

The statutory bonus must be paid within 8 months from the close of the accounting year. For example, for the financial year ending March 31, the bonus should be paid by November 30.

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