Statutory Bonus Calculator
Work out your statutory bonus for the year. Enter your monthly wages (basic pay + DA), the bonus rate your employer pays and the months you worked.
At 8.33% of ₹1,80,000 in wages, your statutory bonus is ₹14,994. Depending on your employer’s profits, it can be anywhere from ₹14,994 to ₹36,000.
Statutory bonus is taxed as part of your salary. The wage ceilings under the Code on Wages, 2019 are set by government notification; check with your employer which wage they use.
What is statutory bonus?
Statutory bonus is a yearly payment employers must make to employees under the Code on Wages, 2019. Its bonus chapter came into force on 21 November 2025 and replaced the Payment of Bonus Act, 1965. Every employee who has worked at least 30 days in the accounting year gets at least 8.33% of the wages they earned, even if the employer made no profit. Depending on profits, the employer pays up to 20%.
How statutory bonus is calculated
Bonus = wages earned in the year × bonus rate (at least ₹100)
“Wages” here means basic pay plus dearness allowance. Under the labour codes, if allowances left out of wages are more than half your total pay, the excess counts as wages too.
Worked example
Wages of ₹15,000 a month for all 12 months (₹1,80,000 for the year):
- At the minimum 8.33%: ₹14,994
- At the maximum 20%: ₹36,000
- If your employer calculates on a capped wage of ₹7,000 a month: ₹6,997 at 8.33%, ₹16,800 at 20%
What changed with the Code on Wages
| Payment of Bonus Act, 1965 (until 20 Nov 2025) | Code on Wages, 2019 (from 21 Nov 2025) | |
|---|---|---|
| Minimum and maximum | 8.33% to 20% | 8.33% to 20% (unchanged) |
| Who is covered | Wages up to ₹21,000 a month | Ceiling set by government notification; those above it still get bonus on a notional wage |
| Wage used to calculate | ₹7,000 or the minimum wage, whichever is higher | Set by government notification, or the minimum wage, whichever is higher |
The ceilings under the Code had not been notified as of mid-2026, so employers differ in the wage they use. Ask HR or check your payslip, and enter that figure as the wage cap in the calculator.
Tax on bonus
Statutory bonus is part of your salary income and taxed at your slab rate, in both the old and new tax regimes. Your employer deducts TDS on it with your salary.
When to use a different calculator
- Working out your monthly take-home pay? Use the In-Hand Salary Calculator.
- Leaving a job after several years? Use the Gratuity Calculator.
- Checking a raise? Use the Salary Hike Calculator.