Payment of Bonus Act 1965
Bonus Calculator
Calculate statutory bonus as per Payment of Bonus Act 1965. Minimum 8.33%, maximum 20%, eligibility check for salary up to ₹21,000/month.
Employee Salary Details
₹
₹
%
Not Eligible for Statutory Bonus
Working days less than 30.
Bonus Calculation
Annual Bonus Amount
₹100
Based on 8.33% of salary
Monthly Bonus
₹8
Calculation Base
₹0
Minimum Bonus (8.33% or ₹100)₹100
Maximum Bonus (20%)₹0
Tax Treatment
Taxable Income: Bonus amount is fully taxable as part of salary income. It will be added to gross salary for income tax calculation.
TDS Applicable: Tax will be deducted at source (TDS) on the bonus amount along with salary.
Payment Timeline: Bonus must be paid within 8 months from the end of the accounting year. Penalty for delay: ₹100-₹1,000 per employee.
Payment of Bonus Act 1965 - Key Rules
Eligibility Criteria
Salary limit: ₹21,000 per month or ₹2,52,000 per year
Minimum working days: 30 days in accounting year
Applicable to establishments with 20+ employees
All employees eligible (permanent, temporary, contract)
Bonus Calculation
Minimum: 8.33% of salary (or ₹100, whichever higher)
Maximum: 20% of salary for accounting year
Calculation base: Basic + DA only (not gross salary)
Proportionate for employees working <365 days
Disqualification
Dismissal for fraud, riotous/violent behavior
Theft, misappropriation, or sabotage of property
Resignation before payment if worked <30 days
Sexual harassment proven in inquiry
Payment Rules
Must be paid within 8 months of accounting year end
Can be paid in cash or by check/bank transfer
Penalty for delay: ₹100-₹1,000 per employee
Set-off & Set-on provisions for allocable surplus
Automate Bonus Calculation & Payment
Our HRMS automatically calculates statutory bonus as per Payment of Bonus Act 1965, checks eligibility, processes payments, and maintains compliance records for all employees.