Question
How is bonus calculated under the Payment of Bonus Act?
Answer
Bottom line: Employees earning up to ₹21,000 a month get a statutory bonus of 8.33% to 20% of wages.
1. Eligibility
Applies to employees drawing basic plus DA up to ₹21,000 a month who worked at least 30 days in the year.
2. The amount
Minimum 8.33% and maximum 20%, calculated on the higher of ₹7,000 or the minimum wage where actual wages exceed that ceiling.
3. Note
Bonus now sits under the Code on Wages; watch for revised ceilings as the rules are notified.
Plan salary components with our Salary / CTC Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.