Labour Law
Payment of Bonus Act: Applicability, Eligibility and Calculation
2026-03-01 · 7 min
The Payment of Bonus Act mandates statutory bonus for eligible employees in establishments with 20+ workers. This article walks through the rules and the Form D filing.
Eligibility
Employees earning up to ₹21,000 per month and having worked at least 30 days in the year.
Computation
Minimum 8.33% and maximum 20% on salary capped at ₹7,000 or minimum wage, whichever is higher.
Form D filing
File the annual return in Form D within 30 days of bonus payment with the Labour Department.
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