Statutory bonus calculator (India)
Annual bonus calculator for restaurant staff under the Payment of Bonus Act 1965. Eligible employees: gross salary ≤ ₹21,000/month and worked ≥ 30 days in the financial year. Bonus computed on min(actual salary, ₹7,000) — or your state's notified minimum wage if higher. Minimum 8.33% (1 month's Basic), maximum 20%. Slide to set your rate, see per-employee and total liability. Due by 30 November. Print A4 bonus statement + CSV. No signup.
Payment of Bonus Act 1965 — key provisions for restaurants
The Payment of Bonus Act 1965 mandates an annual bonus payment to eligible employees. Restaurants with 20 or more employees are covered; some state amendments extend coverage to 10+ employee establishments. The 2015 Amendment updated two key thresholds:
- Eligibility ceiling raised to ₹21,000/month (from ₹10,000). Employees earning above this are not covered by the Act.
- Bonus wage ceiling raised to ₹7,000/month (from ₹3,500). The actual bonus is computed on min(salary, ₹7,000 or state minimum wage — whichever is higher).
The minimum bonus of 8.33% is payable regardless of profit. If the establishment has an allocable surplus above the minimum threshold, bonus between 8.33% and 20% may be paid. Many restaurants pay 8.33% as a flat minimum, typically before Dussehra or Diwali, as custom and as required by various state bonus payment notifications.
The bonus wage ceiling and state minimum wages
The 2015 Amendment specifies that the bonus computation ceiling is ₹7,000/month or the minimum wage notified for the scheduled employment under the Minimum Wages Act — whichever is higher. In practice, for most states the minimum wage for unskilled or semi-skilled workers in hotels/restaurants now exceeds ₹7,000/month, which means the effective ceiling is the minimum wage:
- Maharashtra: Unskilled minimum wage ~₹12,000–₹14,000/month (varies by zone); update the ceiling accordingly.
- Karnataka: ~₹11,000–₹13,000/month for unskilled in hotels.
- Delhi: ~₹16,000+/month for unskilled workers.
- Tamil Nadu: ~₹9,000–₹11,000/month for unskilled.
Set the bonus wage ceiling in the calculator to your state's current notified minimum wage for the relevant category. Using ₹7,000 when the minimum wage is higher may result in underpayment of bonus, which is a labour law violation.
When to pay and what the due date means
The Act requires bonus to be paid within 8 months from the close of the accounting year. For the standard April–March financial year, that means by 30 November. Practically, restaurant operators should pay before Dussehra (October) or Diwali (October/November) — this is both customary and often mandated by state notifications. Some states issue specific pre-Diwali bonus payment orders.
Non-payment or delayed payment of bonus attracts prosecution under the Act: up to 6 months imprisonment or ₹1,000 fine (or both) for the employer. An employee can file a bonus claim with the Labour Commissioner within 1 year of the due date.
Where this fits
- Salary slip generator — the month in which bonus is paid should reflect it as a separate line on the salary slip: "Bonus (Payment of Bonus Act)" distinct from the regular CTC components
- EPF & ESI calculator — statutory bonus is not included in the definition of "wages" under the EPF Act; no EPF or ESI is deductible on the bonus amount
- Gratuity calculator — like EPF, bonus payments are excluded from the Basic+DA used for gratuity computation
- Compliance calendar 2026 — bonus payment due date (30 Nov) appears in the compliance calendar alongside EPF/ESI and labour law deadlines
- P3 — Payroll pillar — all payroll guides for Indian restaurants: EPF/ESI, salary structure, minimum wage, overtime, gratuity, FnF settlement, and bonus compliance