Bonus Calculator
Calculate your gross and net bonus with tax implications
Salary Details
Statutory Bonus (Payment of Bonus Act)
Payment of Bonus Act, 1965: Minimum bonus is 8.33% and maximum is 20% of salary. Applicable to employees earning up to Rs 21,000/month. The salary cap for bonus calculation is Rs 7,000/month (or Rs 21,000 as notified by the government). If actual salary is less than the cap, actual salary is used.
Tax Computation
Bonus Summary
Bonus Calculator
The Bonus Calculator helps employees compute their gross and net bonus amounts based on different bonus types - Statutory Bonus (as per the Payment of Bonus Act, 1965), Performance Bonus, or Ex-gratia payments. It also estimates the tax impact on your bonus income.
Key Components
- Monthly Salary (Basic + DA)
- Bonus Type (Statutory / Performance / Ex-gratia)
- Statutory Bonus calculation as per Payment of Bonus Act
- Tax implications at applicable slab rate
- Net Bonus after tax deduction
Statutory Bonus Rules
As per the Payment of Bonus Act, 1965:
- Minimum Bonus: 8.33% of salary
- Maximum Bonus: 20% of salary
- Salary cap for calculation: Rs 7,000/month (or Rs 21,000 as per government notification)
- Applicable to employees drawing salary up to Rs 21,000/month
- Establishments with 20 or more employees must pay statutory bonus
Tax Treatment
- Bonus is fully taxable as salary income
- Tax is deducted at the employee's applicable slab rate
- Employer deducts TDS on bonus at the time of payment
Benefits
- Estimate your bonus amount accurately
- Understand tax impact on bonus income
- Plan investments with your bonus amount
- Compare statutory vs performance bonus
- Know your rights under the Payment of Bonus Act
Using the Calculator
Enter your monthly salary (Basic + DA), select the bonus type, configure the bonus percentage or amount, and select your tax bracket. The calculator will show you the gross bonus, tax on bonus, and net bonus amount along with the bonus as a percentage of your annual salary.
Understanding Your Bonus
Enter your monthly salary, applicable bonus percentage, and the calculation base. The calculator shows your statutory bonus amount and the tax impact on your overall income. It also helps you plan how to allocate your bonus across debt repayment, investments, and discretionary spending.
Frequently Asked Questions
How is bonus calculated in India?
Under the Payment of Bonus Act, 1965, eligible employees (drawing up to Rs 21,000 per month) are entitled to a minimum bonus of 8.33% and maximum 20% of their salary. The calculation base is capped at Rs 7,000 per month or the actual salary, whichever is higher. Bonus is payable within 8 months of the accounting year close.
Is bonus taxable in India?
Yes. Bonus is fully taxable as salary income at your applicable income tax slab rate. TDS is deducted by the employer at the time of payment. Bonus is included in Form 16 under the salary head. It can push you into a higher tax bracket for that financial year.
What is the difference between statutory bonus and performance bonus?
Statutory bonus is mandated by law (8.33-20% for eligible employees). Performance bonus or incentive is discretionary, offered by employers based on individual or company performance. There is no legal cap on performance bonus. Both are fully taxable.
