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Bonus

An eligible employee gets a bonus of 8⅓% to 20% of wages, and at least ₹100. Under the Central notifications, employees drawing up to ₹21,000 a month are eligible, and for wages above ₹7,000 a month bonus is worked out on ₹7,000 or the minimum wage, whichever is higher.

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Wages as defined in Code on Wages s.2(y): basic pay, dearness allowance and retaining allowance, with excluded items over half added back.
Used only when the monthly wage is ₹7,000 or less.
The minimum wage fixed by the Central Government for this employee's category and area. If it is above ₹7,000, bonus is worked out on it.
At least 8⅓%. Above that, up to 20%, depending on the allocable surplus.

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The ₹21,000 and ₹7,000 figures are the Central Government's notifications S.O. 4711(E) and S.O. 4710(E) under Code on Wages s.26(1) and s.26(2), in force from 21 November 2025. They apply where the Central Government is the appropriate Government.

This calculator does not work out the allocable surplus (CW Code ss.31 to 35), so it does not decide the rate above 8⅓%. For an employee who did not work all the working days, the ₹100 minimum is reduced in proportion where it is more than 8⅓% of the wages for the days worked (s.27). Puja or other customary bonus, or bonus paid in advance, may be deducted (s.37).

Central sphere. Official text reproduced from the Gazette of India, India Code and State Government sources. This is not legal advice; check the source PDF before relying on any provision.