Statutory Bonus Calculator
What is a Statutory Bonus?
A statutory bonus calculator is a helpful tool designed to estimate the annual bonus amount payable to eligible employees under the Payment of Bonus Act, 1965. This act mandates that certain organizations in India pay bonuses to employees earning below a specified salary threshold. The bonus calculator makes it easy to understand how much bonus is legally due based on your basic pay and company eligibility.
Whether you're an HR professional, payroll manager, or employee wanting to verify your payout, a bonus calculator online can simplify the process and save time.
How Does a Bonus Calculator Work?
To use the online bonus calculator, simply enter:
Basic salary + Dearness Allowance (monthly)
Number of working months in the financial year
Bonus percentage (generally between 8.33% and 20%)
The calculator then uses the prescribed formula to calculate bonus based on salary and displays the payable bonus for the year. Note: If the salary exceeds ₹21,000/month, bonus eligibility may not apply under the Act.
A bonus calculator online ensures accurate and quick results, making statutory compliance easier for employers and helping employees understand their entitlements.
Frequently Asked Questions:
Employees earning ₹21,000 or less per month and having worked for at least 30 days in a financial year are eligible.
The minimum statutory bonus is 8.33% of the salary or ₹100 (whichever is higher).
Yes, as long as the company falls under the purview of the Bonus Act.
It is calculated on basic salary plus dearness allowance, not on gross salary.
Yes, bonus amounts are fully taxable as part of income.
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