How statutory bonus is calculated
Bonus = calculation base × months worked × bonus rate
- Calculation base: actual wages if they are ₹7,000 a month or less. Above ₹7,000, bonus is worked out as if wages were ₹7,000 or the minimum wage fixed by the Central Government, whichever is higher.
- Bonus rate: at least 8.33%, or ₹100 if that is more, even without an allocable surplus. At most 20%.
- Part of a year: only the wages for the time worked count, so the bonus falls in proportion.
An employee on ₹18,000 a month works the whole year. With no minimum wage above ₹7,000, the minimum bonus is ₹7,000 × 12 × 8.33% = ₹6,997. If the minimum wage that applies were ₹15,000 a month, it would be ₹15,000 × 12 × 8.33% = ₹14,994. The ₹15,000 is an illustration, not a real rate.
Central minimum wages are fixed by the day. A summary of the Central Rules says to multiply by 26 for a monthly figure.
Who qualifies
- The establishment: 20 or more persons employed, or employed on any day of the accounting year.
- The employee: wages of up to ₹21,000 a month and at least 30 days of work in the accounting year.
When to pay
Within eight months of the end of the accounting year, by credit to the employee's bank account. For a year ending 31 March 2026, that is 30 November 2026.
The statutory bonus guide covers the notifications, who is left out, allocable surplus and a checklist for paying on time.
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