Statutory Bonus Calculator (Code on Wages, 2019)
Calculate corporate employee bonus payouts or estimate annual corporate statutory provisioning under the Code on Wages, 2019.
Bonus Specifications
Defaults (₹21,000 eligibility; ₹7,000 calculation) reflect the Central Government notifications. If the applicable Central minimum wage is higher than ₹7,000, enter that higher amount as the calculation limit. Confirm the appropriate-government notification for your establishment.
Use the applicable statutory wage definition, not basic pay or CTC by default. The result is an estimate.
The general service condition is at least 30 days in the accounting year; verify the rule and records for the case.
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Passes the entered wage and service checksHow to use this bonus estimate
This tool estimates a simple bonus amount from the monthly wage, months worked and rate you enter. It does not decide whether an establishment or employee is legally covered, or calculate allocable surplus.
- Confirm the 20-person establishment coverage test and any statutory exclusions.
- Check that the employee worked at least 30 days in the accounting year and use the Code's wage definition.
- The default ₹21,000 eligibility and ₹7,000 calculation amounts are Central Government reference inputs. Confirm the appropriate-government notification and any minimum-wage comparator for your workplace.
- Use actual wage records for the full accounting year. This estimate assumes a steady monthly wage and does not model rate changes or surplus adjustments.
The Code provides minimum and maximum bonus rates, but the amount payable depends on eligibility, the applicable calculation base and surplus rules. Review the current law and records before processing payroll.
Frequently asked questions
Who is eligible for statutory bonus?
The Code on Wages bonus chapter generally applies to establishments with 20 or more employees, subject to exclusions. An employee generally must work at least 30 days and meet the wage ceiling set by the appropriate government. The ₹21,000 figure is the Central Government reference; Kerala employers should confirm whether it applies to their establishment.
What wage base is bonus calculated on?
Use the wage definition and calculation ceiling notified by the appropriate government. A minimum-wage comparator may apply. The calculator's ₹7,000 default is a reference input, not a determination of the applicable base for every Kerala employer.
What is the minimum and maximum bonus rate?
The Code provides a minimum of 8.33% and a maximum of 20%, subject to the eligibility, calculation-base and allocable-surplus provisions. The maximum is not an automatic entitlement.
Is bonus payable in a loss-making year?
A loss does not by itself settle the question. Apply the minimum-bonus, allocable-surplus and set-on/set-off rules to the establishment's accounting-year records and applicable rules.