Statutory Bonus in India: The complete employer's guide
Everything you need to know about the Payment of Bonus Act, eligibility, and calculations.
Who is eligible for statutory bonus?
The Payment of Bonus Act applies to every establishment with 20 or more employees. Employees earning up to ₹21,000 per month who have worked for at least 30 days in a financial year are eligible.
Calculation formula and limits
Bonus is calculated on a maximum salary of ₹7,000 or the minimum wage (whichever is higher). The minimum bonus is 8.33% and the maximum is 20% of the annual salary.
Timelines for payment
Bonus must be paid within 8 months from the close of the financial year. Most companies in India pay it during the festive season (September/October).
Stay 100% Compliant with HRMione
Automated statutory contributions, tax regimes, and labour law alignment.
Keep reading
5 payroll compliance changes for FY 2026
What HR and finance leaders must know before the next payroll run.
Read HRDesigning an onboarding that reduces attrition
The first 90 days decide the next 900. Here's the framework.
Read PerformanceWhy continuous feedback beats annual reviews
Rhythm, not events. A practical shift for growing teams.
Read