Bonus Compliance.
Statutory bonus is now governed by the Code on Wages, 2019, which replaced the Payment of Bonus Act, 1965 from November 2025. We work out who is eligible, compute the allocable surplus from your accounts, apply the minimum and maximum bonus with set-on and set-off, and help you pay and record it within the period the Code allows.
Typically 1–2 weeks once accounts are finalised. Minimum bonus can be computed earlier from payroll data if you want to pay it ahead of the accounts.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Employers with employees whose wages fall within the bonus eligibility limit
- Principal employers, who must pay minimum bonus if a contractor fails to
- Companies carrying set-on or set-off balances from earlier years
What you receive at the end.
- 01Allocable surplus computation
- 02Employee-wise bonus calculation
- 03Set-on and set-off schedule
- 04Payment register and supporting workings
Bonus Compliance, step by step.
Typically 1–2 weeks once accounts are finalised. Minimum bonus can be computed earlier from payroll data if you want to pay it ahead of the accounts.
- 1
Eligibility review
We identify eligible employees based on their wages and days worked in the accounting year.
- 2
Surplus computation
We compute gross profit, available surplus and allocable surplus from your finalised accounts in the prescribed manner.
- 3
Bonus calculation
We calculate each employee's bonus on wages as the Code defines and caps them, and the set-on or set-off to carry forward.
- 4
Payment and records
We prepare payment workings and records, and include bonus details in the annual return where your applicable rules require it.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Audited or finalised financial statements for the accounting year
- Employee-wise wages and days worked for the year
- Previous years' bonus workings and set-on or set-off balances
- Any bonus settlement or agreement with employees
- Contractors' bonus payment proof, if you are a principal employer
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Bonus Compliance.
Ready to discuss Bonus Compliance?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.