Bonus Calculator – Calculate Annual & Performance Bonus on Salary

Use our Bonus Calculator to estimate your annual or performance-based bonus based on your salary structure. This calculator helps you understand how bonus impacts your in-hand salary, take home salary, and overall CTC.

Whether you are using a salary calculator, CTC to in-hand salary calculator, or monthly salary calculator India, bonus plays a key role in increasing your total earnings.

What is Bonus?

Bonus is an additional payment given by an employer to an employee over and above the regular salary. It is usually linked to company performance, individual performance, or statutory requirements.

In India, bonus may be paid as:

• Performance or incentive bonus
• Annual or festival bonus
• Statutory bonus under the Payment of Bonus Act

Bonus Calculator – How Bonus is Calculated

Bonus calculation depends on your employer’s policy and applicable laws. Our bonus calculator gives you an estimated value based on your basic salary or gross salary.

Bonus = Basic Salary × Bonus Percentage
  

In many companies, bonus ranges from 5% to 20% of annual basic pay, while statutory bonus is governed by the Payment of Bonus Act, 1965.

Statutory Bonus under Payment of Bonus Act

As per Indian labour law, employees earning up to a specified salary limit are eligible for statutory bonus.

• Minimum Bonus: 8.33% of salary
• Maximum Bonus: 20% of salary
• Calculated on basic salary or ₹7,000 (or minimum wage), whichever is higher

This bonus is usually paid once a year and directly affects your take home salary during the payout month.

Impact of Bonus on In-Hand Salary

Bonus is usually not part of your fixed monthly salary, but when paid, it significantly increases your in-hand salary for that month.

When using an in hand salary calculator after tax or TDS on salary calculator, bonus is added to taxable income for that financial year.

Bonus Taxation in India

Bonus is fully taxable under the head Income from Salary. It is added to your annual income and taxed as per the applicable income tax slab.

Employers usually deduct TDS on bonus payments, which is why bonus payouts may appear lower than expected in your bank account.

Bonus Calculator for 7th CPC Employees

Government employees under the 7th Pay Commission can use this tool along with a 7th pay commission salary calculator to estimate productivity-linked or ad-hoc bonuses.

Bonus is generally calculated on revised basic pay under the 7th CPC structure.

Bonus Calculator for 8th Pay Commission

Employees preparing for future pay revisions can use this as an 8th pay commission salary calculator to estimate bonus amounts based on expected increases in basic salary.

It is especially useful for those searching for an 8th pay commission salary calculator in Hindi to understand post-revision earnings.

Bonus vs Incentives – Key Difference

• Bonus: Usually annual and company-wide
• Incentives: Performance-linked and frequent
• Both are taxable and impact take home salary

Frequently Asked Questions (FAQs)

Is bonus included in CTC?

Yes, most companies include bonus as part of the overall CTC, but it is not guaranteed unless specified.

Does bonus increase monthly salary?

Bonus is not added to monthly salary but increases your in-hand salary in the payout month.

Is bonus different from gratuity?

Yes, bonus is performance-linked, while gratuity is a retirement benefit paid after completing years of service.

Why Use Our Bonus Calculator?

• Instant and accurate bonus estimation
• Works with salary calculator India
• Helpful for tax planning and salary negotiation
• Ideal for private and government employees

Use our Bonus Calculator India to understand how bonuses affect your salary, CTC, and take home salary in a clear and transparent way.