What is the Statutory Bonus Calculator?
A statutory bonus calculator is a tool that helps employees calculate their own statutory bonus. And as per the laws and regulations of countries or regions, employees are entitled to receive.
With the usage of a statutory bonus calculator, both employers & employees can ensure that the statutory bonus calculation is accurate & in compliance with applicable laws and regulations.
Some statutory bonus calculators may also take into account factors such as tax deductions & employer contributions to the bonus amount.
How to Calculate Statutory Bonus?
In order to calculate your statutory bonus, you are gonna need a statutory bonus calculation formula. Because without it, you just can not calculate your statutory bonus accurately.
After getting the formula, you have to input the criteria that are required to calculate the statutory bonus, such as salary level, length of service, and other relevant factors.
However, with the statutory bonus calculator, you don’t have to worry about the formula, because you can just place your inputs, and the calculation will be done accordingly.
By using a statutory bonus calculator, both employers & employees can ensure that the bonus calculation is accurate & in compliance with applicable laws & regulations.
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Benefits of Having Superworks’ Free Statutory Bonus Calculator?
- Accuracy: Superworks’ statutory bonus calculator is there to ensure that each and every employee’s bonus calculation stays completely accurate.
- Compliance: By using Superworks’ statutory bonus calculator, both employers & employees can ensure that their bonus calculation comes in compliance with the whatsoever applicable laws & regulations, which directly reduces every possible risk of legal and financial penalties.
- Transparency: Superworks’ statutory bonus calculator provides detailed transparency into the bonus calculation process, which allows employees to understand how their bonus is being calculated & what factors are being considered.
- Fairness: By using a standardised calculation method based on the applicable laws and regulations, Superworks’ statutory bonus calculator helps ensure that the bonus amount is fair and consistent across all eligible employees.
FAQ
1. What is a statutory bonus in CTC?
A statutory bonus is a legally mandated payment that comes under the section of Payment of Bonus Act, 1965. It is basically included in the Cost to Company (CTC) section, as a crucial component of employee compensation. This bonus is calculated based on the employee’s salary & is aimed at sharing the company’s profits with its employees.
2. What is the formula to calculate a statutory bonus?
The statutory bonus is calculated as follows:
Bonus = (Basic Salary + Dearness Allowance) × Bonus Percentage
- Minimum Bonus Percentage: 8.33%
- Maximum Bonus Percentage: 20%
Note: If the salary exceeds ₹7,000 or the minimum wage (whichever is higher), the calculation is capped at that amount.
3. Who is eligible to receive a statutory bonus?
An employee is eligible for a statutory bonus if:
- Their monthly salary is ₹21,000 or less.
- They have worked for at least 30 days in the accounting year.
- This applies to employees in establishments covered under the Payment of Bonus Act.
4. Who is not eligible for a statutory bonus?
Employees not eligible for a statutory bonus include:
- Those earning more than ₹21,000 per month.
- Employees who have not completed 30 days of work in the accounting year.
- Managerial or supervisory staff and employees in certain seasonal establishments.
5. What is the time limit for paying a statutory bonus?
As per the rules and regulations of the country, all employers are required to pay the statutory bonus, and too within 8 months from the end of the accounting year. For example, for the financial year ending March 31, the employee bonus should be paid by November 30 of the same year.
6. Is the statutory bonus taxable?
Yes, as per the rules and regulations listed in the Income Tax Act in India, the statutory bonus is completely taxable. However, people should also consider that a section of an employee’s salary is directly subject to tax deductions at source (TDS) as per the income tax slabs.
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