Calculate your bonus earnings accurately with our Bonus Calculator India. Quickly determine your statutory bonus, tax deductions, and net bonus amount as per the Payment of Bonus Act, 1965. Perfect for employees and employers in India!
Bonus Calculator
User Guide for Bonus Calculator
Our Bonus Calculator helps Indian employees and employers compute bonus payments effortlessly. Follow these steps:
- Enter Basic Salary + DA (Dearness Allowance): Input your monthly basic salary plus DA.
- Select Eligibility Criteria: Ensure you meet the ₹21,000/month limit under the Bonus Act.
- Enter Employment Duration (if applicable): For employees working less than a year, input the exact working days.
- Choose Bonus Percentage (8.33% to 20%): The default is 8.33%, but some companies offer higher bonuses.
- Click “Calculate”: Instantly view your eligible bonus amount, deductions (if any), and net bonus.
Key Features of Our Bonus Calculator
- Accurate as per Indian Bonus Act, 1965
- Calculates statutory bonus (8.33% – 20%)
- Adjustable for part-year employment
- Includes tax implications (if applicable)
- Mobile-friendly & fast results
Benefits of Using Our Bonus Calculator
- Saves Time: No manual calculations needed.
- Error-Free Results: Ensures compliance with legal standards.
- Helps in Financial Planning: Know your exact bonus before payment.
- Useful for Employers: Ensures correct bonus disbursement.
Bonus Calculation Policy India
1. Eligibility Criteria
- Employees earning up to ₹21,000/month (Basic + DA) are eligible.
- Must have worked for at least 30 days in a financial year.
2. Minimum & Maximum Bonus
- Minimum Bonus: 8.33% of annual salary (even if the company incurs a loss).
- Maximum Bonus: 20% of annual salary (based on profits).
3. Calculation Formula
- For Full-Year Employment:
Bonus = (Basic + DA) × (Bonus Percentage) × 12
- For Part-Year Employment:
Bonus = [(Basic + DA) × (Bonus Percentage) × (Number of Months Worked)] + Pro-Rata Adjustment
4. Tax Implications
- Bonus is taxable under “Income from Salary” (if exceeding ₹5,000/year).
- TDS may apply if bonus exceeds ₹50,000 (Section 192 of IT Act).
5. Disbursement Rules
- Must be paid within 8 months of the financial year closing.
- Can be paid annually or along with salary.
Conclusion
Our Bonus Calculator India simplifies statutory bonus calculations for employees and employers, ensuring compliance with the Payment of Bonus Act, 1965. Whether you’re checking eligibility, estimating tax deductions, or verifying employer calculations, this tool provides fast, accurate, and reliable results.
FAQ
Who is eligible for a bonus in India?
Employees earning up to ₹21,000/month (Basic + DA) and working at least 30 days in a financial year are eligible under the Payment of Bonus Act, 1965.
What is the minimum bonus percentage in India?
The minimum statutory bonus is 8.33% of the annual salary, even if the company is in loss.
Is bonus taxable in India?
Yes, bonus is taxable under “Income from Salary” if it exceeds ₹5,000/year. TDS may apply for bonuses over ₹50,000.
How is bonus calculated for part-time employees?
Bonus is calculated on a pro-rata basis: [(Basic + DA) × Bonus % × (Months Worked/12)].
Can a company pay more than 20% bonus?
Yes, companies can pay higher than 20%, but 8.33% is mandatory even if profits are low.
When should the bonus be paid in India?
Bonus must be paid within 8 months after the financial year ends.
Is DA included in bonus calculation?
Yes, Dearness Allowance (DA) is included in the bonus calculation.
What if my salary exceeds ₹21,000/month?
Employees earning above ₹21,000/month are not covered under the Bonus Act, but employers may still provide discretionary bonuses.
Can an employer refuse to pay a bonus?
No, if the employee is eligible, the employer must pay at least 8.33% as per law.
How does the bonus calculator work?
You enter Basic + DA, select bonus percentage, and employment duration. The calculator applies the Bonus Act formula and displays your net bonus.