Statutory Bonus Calculator
by Zoho PayrollFree Statutory Bonus Calculator
Here's an easy and simple way to know your benefit amount. Calculate your statutory bonus with this free calculator.
Monthly Statutory Bonus Amount
Disclaimer: Zoho has taken great care and has made every attempt to ensure that the information obtained from the tool is accurate. However, Zoho is not responsible for any errors or omissions and provides no guarantee or warranty on the correctness of the results obtained from the tool. By using this tool you agree not to hold Zoho liable for any issues that arise from incorrect results obtained.
Frequently Asked Questions
What is a Statutory Bonus?
A statutory bonus is an annual or monthly incentive given to employees who receive less than ₹21,000 a month. It is a way of sharing the company's profits with their employees.
What is the Statutory Bonus Calculator?
The Statutory Bonus Calculator is a free tool developed by Zoho to calculate the amount of statutory bonus that an eligible employee can get in a financial year. It uses the employee's basic and dearness allowance, minimum wage in the state, and the statutory bonus percentage to compute the bonus.
Who is eligible to get a statutory bonus?
Employees who have been employed for more 30 days and receive less than ₹21,000 per month are eligible to receive a statutory bonus.
How is statutory bonus calculated?
- 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.
When should the statutory bonus be disbursed to employees?
The statutory bonus can be paid as a one-time earning or every month, as part of the employee's payroll. As a one-time earning, it is usually disbursed during the festivals in October or November.
Can an employee take an advance on the statutory bonus?
Yes, employees can claim an advance on the statutory bonus and it can be adjusted against the actual payment when it is paid to the employee.
Can the statutory bonus be paid to employees every month?
Yes, the employer can include the bonus in the monthly salary
