Work out your statutory bonus at 8.33% to 20%, and check if you are eligible.
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Bonus = wage used × months worked × bonus %
| Rule | Limit |
|---|---|
| Pay limit (eligibility) | Basic + DA up to ₹21,000 a month |
| Days worked | At least 30 days in the financial year |
| Company size | 20 or more employees (10+ in some states) |
| Wage cap for calculation | ₹7,000 or minimum wage, whichever is higher |
| Bonus range | 8.33% to 20% |
| Due date | Within 8 months of the year end (30 November) |
Under the Code on Wages, these limits apply from 21 November 2025, as explained by Khaitan & Co (September 2026). The ₹21,000 and ₹7,000 figures did not change.
| Basic + DA | Wage used | Months | At 8.33% | At 20% |
|---|---|---|---|---|
| ₹6,500 | ₹6,500 | 12 | ₹6,497 | ₹15,600 |
| ₹12,000 | ₹7,000* | 12 | ₹6,997 | ₹16,800 |
| ₹18,000 | ₹7,000* | 12 | ₹6,997 | ₹16,800 |
| ₹18,000 | ₹7,000* | 6 | ₹3,499 | ₹8,400 |
| ₹25,000 | - | - | Not eligible | Not eligible |
* Capped at ₹7,000. If the minimum wage for your job is higher, say ₹12,000, the cap becomes ₹12,000 and your bonus goes up. Type it in the tool.
| Point | Statutory bonus | Performance bonus |
|---|---|---|
| Who gets it | Basic + DA up to ₹21,000 | Anyone, as per company policy |
| Amount | 8.33% to 20% of capped wage | Any amount, often a % of CTC |
| Can the company skip it? | No, it is the law | Yes, if targets are not met |
| Shown in CTC? | Often yes | Usually as "variable pay" |
| Tax | Taxed as salary | Taxed as salary |
Want to see how a bonus changes your take-home pay? Use the CTC to In-Hand Salary Calculator.
| Months worked | At 8.33% on ₹7,000 | At 20% on ₹7,000 |
|---|---|---|
| 3 | ₹1,749 | ₹4,200 |
| 6 | ₹3,499 | ₹8,400 |
| 9 | ₹5,248 | ₹12,600 |
| 12 | ₹6,997 | ₹16,800 |
Joined in the middle of the year? Pick the months you actually worked. You need at least 30 working days in the year to qualify.
Read more about how the new codes change your pay in new labour codes and your salary.
Bonus = wage used × months worked × bonus %. The wage used is your Basic + DA capped at Rs 7,000 or the minimum wage, whichever is higher. The % is 8.33 to 20.
Employees whose Basic + DA is up to Rs 21,000 a month and who worked at least 30 days in the financial year.
Rs 583 a month, or Rs 6,997 for a full year of 12 months.
No. It is calculated on Basic + DA, and that is capped at Rs 7,000 or the minimum wage, whichever is higher.
Within 8 months of the end of the financial year. For April 2025 to March 2026, that is by 30 November 2026.
Not a statutory bonus. Your company may pay a performance or festival bonus as per its own policy.
The Code on Wages keeps the same Rs 21,000 eligibility and Rs 7,000 calculation limits, applied from 21 November 2025.
Yes. Bonus is taxed as part of your salary in the year you receive it.