Bonus Calculator - Statutory & Performance Bonus Calculator India 2025
Calculate your statutory bonus, performance bonus, and festival bonus with accurate tax implications. Understand your bonus eligibility and net amount as per Indian labor laws.
Net Bonus Amount
₹19.99 K
statutory bonus after tax
Calculation Details
Essential Bonus Tips for Indian Employees
Expert insights to understand and maximize your bonus entitlements
Know Your Bonus Rights
Statutory bonus is mandatory for employees earning up to ₹21,000 per month. You're entitled to 8.33% of your basic salary or ₹100, whichever is higher.
Complete 240 Working Days
To be eligible for full statutory bonus, you must complete minimum 240 working days in the accounting year. Less than 240 days means proportionate bonus.
Tax on Bonus Amounts
Statutory bonus up to ₹3,500 is tax-free. Any bonus above this limit is taxed as per your income tax slab. Performance bonuses are fully taxable.
Negotiate Performance Bonus
Apart from statutory bonus, negotiate for performance-based bonuses. These can significantly boost your annual income and career growth.
Types of Bonus in India - Complete Guide
Understanding different types of bonuses and their calculation methods
Statutory Bonus
Eligibility
Calculation
Tax Benefit
Performance Bonus
Criteria
Range
Taxation
Festival Bonus
Timing
Amount
Nature
Statutory Bonus Calculation Example
Understanding how statutory bonus is calculated with real example
Example: Employee with ₹18,000 basic salary
Given Information:
Calculation:
Bonus Calculation Formulas
Mathematical formulas for calculating different types of bonuses as per Indian regulations
Statutory Bonus Formula
Full Year Eligibility (≥240 days)
Bonus = Max[(Basic Salary × 12 × 8.33%), ₹100]
Partial Year (<240 days)
Bonus = (Annual Bonus × Working Days) ÷ 240
Tax Calculation
Tax = Max[(Bonus - ₹3,500), 0] × Tax Rate%
Performance Bonus Formula
Basic Formula
Bonus = Annual Salary × Bonus %
Monthly Salary Based
Bonus = Basic Salary × 12 × Performance %
Tax Calculation
Tax = Gross Bonus × Tax Slab Rate%
Festival/Annual Bonus
Percentage Based
Bonus = Annual Salary × Festival %
Fixed Amount Method
Bonus = 1 Month Basic Salary
Tax Calculation
Tax = Gross Bonus × Tax Slab Rate%
Understanding the Formulas
Important: Statutory bonus is governed by the Payment of Bonus Act, 1965. The 8.33% rate is legally mandated and cannot be reduced by employers. Performance and festival bonuses are discretionary and vary by company policy.
Frequently Asked Questions about Bonus Calculation
Common questions about bonus eligibility, calculation, and tax implications
What is statutory bonus and who is eligible for it?
Statutory bonus is mandated by the Payment of Bonus Act, 1965. Employees earning up to ₹21,000 per month and completing minimum 1 year of service are eligible. The bonus is 8.33% of basic salary or ₹100, whichever is higher.
How is statutory bonus calculated?
Statutory bonus = (Basic Salary × 8.33%) or ₹100 (whichever is higher). For employees with less than 240 working days, it's calculated proportionately: (Working Days/240) × Bonus Amount. Maximum salary considered is ₹21,000 per month.
What's the difference between statutory and performance bonus?
Statutory bonus is legally mandatory under the Bonus Act, calculated at 8.33% of basic salary. Performance bonus is discretionary, based on company policy and individual/company performance, and can vary widely in percentage and amount.
Is bonus amount taxable? What are the tax implications?
Statutory bonus up to ₹3,500 per year is tax-free. Any amount above this limit is added to your total income and taxed as per your income tax slab. Performance bonuses are fully taxable as salary income.
When should bonus be paid by the employer?
Statutory bonus must be paid within 8 months from the close of the accounting year. If paid after due date, employer has to pay compensation at 20% per annum. Most companies pay bonus during festival seasons like Diwali or Dussehra.
Can bonus be paid in lieu of other benefits?
No, statutory bonus cannot be adjusted against any other payment like leave encashment, gratuity, or retrenchment compensation. It's a separate entitlement that must be paid in addition to salary and other benefits.
What if I leave the company before bonus payment?
If you've completed minimum 1 year of service and worked for at least 30 days in the bonus year, you're entitled to proportionate bonus even after leaving. The calculation will be based on actual working days.
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