What is Statutory bonus?
Short answer
Statutory bonus is a yearly payment under the Payment of Bonus Act of between 8.33% and 20% of wages, for employees earning up to ₹21,000 a month who worked at least 30 days in the year.
Rules
- Eligible employees earn ₹21,000 a month or less and have worked at least 30 days in the accounting year.
- The bonus is calculated on wages capped at ₹7,000 a month or the minimum wage, whichever is higher.
- The minimum bonus is 8.33% and the maximum 20% of that wage.
In AdviHR
AdviHR has a statutory bonus module that records approved bonus payouts and pays them with a payroll run.
Frequently asked questions
Who gets a statutory bonus?
Employees earning up to ₹21,000 a month who worked at least 30 days in the year, in establishments the Act covers.
Related terms
How sure are we? These figures use the same rules AdviHR payroll applies. We publish what has been checked against an official source and what has not, on the statutory accuracy page.
General information, not legal or tax advice. Confirm against the official notification and your adviser.