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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