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Statutory bonus · Code on Wages 2019 · 2025-26

Statutory bonus calculator India — 8.33% to 20% under the Code on Wages, for 2025-26

Short answer. Put in your basic + DA, the months you worked from April 2025 to March 2026, the minimum wage for your job and the rate your company declared: you see the bonus you can expect, the minimum and the maximum. Who: employees drawing wages up to the limit notified by the Government, with at least 30 days of work in the accounting year (Code on Wages, s. 26(1)).

 

  • Bonus credited to your bank account by — 8 months later (s. 39)type the date

Remind me 3 days before

Check your own case.

Section 39 of the Code on Wages, 2019: within eight months from the close of the accounting year; the Government can extend it on the employer's application.

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Statutory bonus · Code on Wages 2019 · 2025-26

Your bonus for 2025-26 — the minimum, the declared rate and the maximum

Put in your basic + DA, the months you worked from April 2025 to March 2026, the minimum wage for your job and the rate your company declared. You see the bonus to expect, with an Excel worksheet and a letter asking HR for the computation. No sign-up.

  1. Ask HR for the bonus notice: the rate declared and the wages counted.
  2. If the figure differs, send the letter in the Word file asking for the computation.
  3. Section 39: the bonus for 2025-26 should reach your bank account by 30 November 2026.

From the Code on Wages, 2019: minimum 8⅓% of wages earned or ₹100 (s. 26(1)), calculated on the notified ceiling or the minimum wage if your wages are higher (s. 26(2)), up to 20% (s. 26(3), (5)), in proportion to the time worked (s. 27), paid within eight months of the year end (s. 39). The ₹21,000 limit and ₹7,000 ceiling are editable defaults — check at the start of the year. Not legal advice.

Meera, Layers template assistant

Meera, Layers template assistant

Tell me your basic + DA and the months you worked, and I will show the bonus to expect for 2025-26.

The letter to HR asking for the computation is ready below.

Deadlines

The rules, with the source

WhatDeadlineSource
WhoEmployees drawing wages up to the limit notified by the Government, with at least 30 days of work in the accounting yearCode on Wages, s. 26(1)
Minimum8⅓% of wages earned or ₹100, whichever is higher — even without profits. 26(1)
CeilingIf your wages are above the notified amount, bonus is calculated on that amount or the minimum wage, whichever is highers. 26(2)
MaximumUp to 20% of wages earned, including any productivity bonuss. 26(3), (5)
Part of the yearMinimum bonus reduced in proportion to the days worked; paid leave, lay-off and maternity leave count as workedss. 27, 28
WhenCredited to your bank account within eight months from the end of the accounting year — by 30 November 2026 for 2025-26s. 39

Check at the start of the year: the wage limit for eligibility and the calculation ceiling are notified by the Government; the calculator uses ₹21,000 and ₹7,000 as editable defaults. Wages here mean basic pay + dearness allowance (+ retaining allowance), as defined in section 2(y).

Step by step

What to do, in order

  1. 1

    Take your payslip

    Basic + DA, months worked in 2025-26 and the minimum wage for your job.

  2. 2

    Add the declared rate

    8.33% if your company declared the minimum, up to 20% in a good year.

  3. 3

    Check and ask

    Compare with HR's figure; the letter asks for the computation and the credit date.

Questions

How is statutory bonus calculated?

Take the lower of your monthly wages and the ceiling (the notified amount or the minimum wage, whichever is higher), multiply by the months you worked, and apply the declared rate — at least 8⅓% and at most 20%.

Is bonus calculated on basic or gross salary?

On wages as defined in the Code on Wages: basic pay, dearness allowance and retaining allowance. HRA, conveyance, overtime and commission are left out — but if the left-out parts are more than half of your pay, the excess is added back.

When is the Diwali bonus paid?

The law gives the employer eight months from the end of the accounting year: for April 2025 – March 2026, by 30 November 2026. Many employers pay it before Diwali.

My salary is above ₹21,000. Do I get statutory bonus?

Only if your wages are within the limit notified by the Government. Above it, statutory bonus does not apply, though your employer may pay a performance or festival bonus under your contract.

I joined in the middle of the year. What do I get?

You need at least 30 days of work. The calculator multiplies by the months you actually worked, so a part year gives a proportionate bonus.

Is it free? Do I need to sign up?

It is free and you do not need to sign up: fill in, see the result and download the file. With a free account you can save a copy to your Layers and come back to it later.

Official sources

Other documents

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Keep the papers in one place

Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.

A calculator, not legal advice. Your employer, the bonus notice and the Labour Department decide disputes.