Payments & Wages · All India
Statutory Bonus Under the Payment of Bonus Act
Employees in covered establishments drawing wages within the eligibility limit are entitled to a statutory bonus of at least 8.33% of wages for the accounting year.
Eligibility and rates
| Parameter | Position |
|---|---|
| Establishment coverage | Factories, and establishments employing 20 or more persons |
| Employee eligibility wage limit | ₹21,000 per month |
| Calculation ceiling | ₹7,000 per month or the minimum wage for the scheduled employment, whichever is higher |
| Minimum bonus | 8.33% of wages for the accounting year |
| Maximum bonus | 20% of wages for the accounting year |
| Qualifying service | At least 30 working days in the accounting year |
Payment and filing
- Bonus must be paid within eight months of the close of the accounting year.
- Maintain registers of allocable surplus, set-on and set-off, and bonus paid.
- File the annual return in the prescribed form.
Frequently asked questions
- Who is eligible for statutory bonus?
- Employees drawing wages up to ₹21,000 per month in a covered establishment who have worked at least 30 working days in the accounting year.
- Is bonus payable in a loss-making year?
- Yes — the minimum bonus of 8.33% is payable regardless of profit or loss.
Sources & references
Last Updated: 2026-09-06
Information is based on applicable laws, rules, notifications and government sources and should be verified for the latest amendments.
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