Statutory Bonus Calculator
by Zoho Payroll- Employers can give between 8.33% and 20% of salary ((Basic + DA) or minimum wage) per month to the employee as a bonus, depending on the profits they have accrued that financial year. If the Basic + DA is higher than the minimum wage, then the former is taken into consideration.
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The formula to calculate a statutory bonus is
Statutory bonus = Salary * Percentage of bonus wage - For example, let's say an employee draws ₹15,000 per month and the basic pay is ₹7500. The minimum wage in the employee's state is ₹6000. Since the Basic + DA is more than the minimum wage, the basic pay will be taken into consideration upto Rs.7000.
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For this employee's salary level, the minimum statutory bonus for a month is
7000 * 8.33/100 = ₹583
The maximum statutory bonus for a month is
7000 * 20/100 = ₹1400 - The statutory bonus is calculated for all the months in a financial year and the total amount is paid to the employee either as a one-time earning or as monthly payments.