# Regarding Statutory Bonus

**URL:** <https://community.greythr.com/t/regarding-statutory-bonus/3323>\
**Category:** Ask the Community\
**Created:** [September 13, 2021, 9:00am UTC](https://community.greythr.com/t/regarding-statutory-bonus/3323 "2021-09-13T09:00:33Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![manjot.singh](https://avatars.discourse-cdn.com/v4/letter/m/9e8a1a/32.png) [@manjot.singh](https://community.greythr.com/u/manjot.singh)\
**Post date:** [September 13, 2021, 9:00am UTC](https://community.greythr.com/t/regarding-statutory-bonus/3323/1 "2021-09-13T09:00:33Z")

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Hi Community

Hope everyone is safe and healthy.

I have a small confusion regarding statutory bonus calculation. Below is the e.g for reference:

Calculation of Bonus as per Bonus Act (Amendment of 2015)

If the gross earning of your employees is below Rs.21000 you are eligible to pay a bonus. Calculation of bonus will be as follows:

- If Basic+DA is below Rs.7000 then the bonus will be calculated on the actual amount.

- If Basic+DA is above Rs.7000 then the bonus will be calculated on Rs.7000.

Example:

Case 1:  
If the Basic salary of the employee is less than or equal to Rs 7,000

Saahil is working as an engineer in a Company in Bangalore. His basic salary is Rs. 6,500 per month.

Formula: Basic Salary\*8.33% = Bonus per month

6500\*8.33% = 541.45 (6497.4 per annum)

Case 2  
If the Basic salary of the employee is higher than Rs 7,000

Vedant is working as a Sales officer in one of the shops in Delhi. His basic salary is Rs. 18,000 per month.

Formula: Basic Salary\*20% = Bonus per month

7,000\*20% = 1400 per month

Case 3  
If the Basic salary of the employee is higher than Rs 21,000

There is no bonus applicable to employees having a basic salary of more than Rs. 21000.

I got clarity on Case 1 and Case 3, but I have confusion with Case 2. Can we keep the percentage at 8.33%, or do we have to keep 20% for this, or it can vary between 8.33%-20%.

Kindly help me out.

Regards  
Manjot Singh

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**Author:** ![Bhujabali](https://avatars.discourse-cdn.com/v4/letter/b/50afbb/32.png) [@Bhujabali](https://community.greythr.com/u/Bhujabali)\
**Post date:** [September 13, 2021, 9:23am UTC](https://community.greythr.com/t/regarding-statutory-bonus/3323/2 "2021-09-13T09:23:46Z")

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Dear Sir/Madam,

Small correction I need to suggest. In the Payment of Bonus Act, 1965, there is no concept called " Gross Salary". There is mention of Wages, which means " Basic Salary’ in corporate terminology. Hence if an employee’s Basic Wage is less than 21000, he will be eligible for the Bonus as per the Act.