Bonus Calculator – Calculate Your Bonus Online

A Bonus Calculator is an essential tool for employees and employers to calculate the statutory bonus as per the Payment of Bonus Act, 1965. This Act mandates employers to provide a minimum bonus of 8.33% of an employee’s basic salary, provided they meet the eligibility criteria.

Under this law, any employee earning up to ₹21,000 per month and having completed at least 30 working days in a financial year is eligible for a bonus. The bonus is generally calculated on the basic salary, excluding allowances and other benefits.

Who is Eligible for Bonus?

As per Indian law, all employees (except managerial positions) drawing a monthly salary up to ₹21,000 and having worked at least 30 days in a year are eligible. The minimum bonus payable is 8.33%, and the maximum can go up to 20% depending on company profitability.

How Does This Calculator Help?

Instead of manually calculating your bonus, this online tool simplifies the process. Just enter your monthly basic pay and the number of service months, and it will instantly show the amount you are entitled to.

Formula for Bonus Calculation

The standard formula is: Bonus = Basic Salary × Service Months × 8.33%. Employers may pay a higher percentage, but 8.33% is the minimum required by law.

Legal Compliance

This calculation is in line with the Payment of Bonus Act, 1965. Employers are required to make this payment within eight months from the end of the financial year.

By using this calculator, employees can know what to expect and employers can ensure compliance. Bookmark this tool and use it whenever you want to estimate your bonus payout!