Statutory Bonus in Maharashtra 2026: 10-Employee Threshold, Minimum Wage Calculation & Complete Compliance Guide
Quick Facts: Maharashtra Statutory Bonus at a Glance
Why Most Maharashtra Employers Underpay Bonus — The ₹7,000 vs Minimum Wage Trap
The #1 bonus compliance mistake: using ₹7,000 as the calculation base when the law requires the higher of ₹7,000 or the applicable minimum wage.
| If You Use | 8.33% Bonus/Year (₹) | vs Correct Base | Annual Gap (₹) |
|---|---|---|---|
| ₹7,000 flat (WRONG) | ₹6,996 | — | — |
| ₹13,921 MW (CORRECT — Unskilled Zone I) | ₹13,916 | +₹6,920/employee | ₹6,920/yr per worker |
Zone-Wise Minimum Bonus (8.33%) — FY 2025-26
| Skill Level | Zone I MW (₹/mo) | Zone I Bonus (₹/yr) | Zone II Bonus (₹/yr) | Zone III Bonus (₹/yr) |
|---|---|---|---|---|
| Unskilled | ₹13,921 | ₹13,916 | ₹13,319 | ₹12,722 |
| Semi-Skilled | ₹14,756 | ₹14,749 | ₹14,144 | ₹13,537 |
| Skilled | ₹15,532 | ₹15,528 | ₹14,928 | ₹14,324 |
Maximum Bonus (20%) — FY 2025-26
| Skill Level | Zone I (₹/yr) | Zone II (₹/yr) | Zone III (₹/yr) |
|---|---|---|---|
| Unskilled | ₹33,410 | ₹31,980 | ₹30,547 |
| Semi-Skilled | ₹35,414 | ₹35,846 | ₹34,416 |
| Skilled | ₹37,277 | ₹35,846 | ₹34,416 |
Maharashtra's 10-Employee Threshold — India's Lowest
The 1984 notification that catches more employers than any other state.
| State | Bonus Threshold | Impact |
|---|---|---|
| Maharashtra | 10 employees | More employers covered — shops, clinics, restaurants |
| All other states | 20 employees | Standard central threshold |
Who This Catches
- Small shops, restaurants, and clinics with 10-19 employees — exempt in other states but covered in Maharashtra
- Startups and small businesses that crossed 10 employees even temporarily
- Seasonal businesses (tourism, agriculture processing) that hit 10+ during peak season
Who Is Eligible for Bonus in Maharashtra
The ₹21,000 salary ceiling and 30-day minimum service requirement.
| Criteria | Requirement |
|---|---|
| Salary/wage ceiling | Basic + DA ≤ ₹21,000/month |
| Minimum service | 30 working days in the accounting year |
| Employee type | Any person employed on salary/wage (NOT an apprentice) |
| Permanent/contract | Both permanent and contract employees are eligible |
| Probationers | Eligible (if they've worked 30+ days) |
NOT Eligible
| Category | Why |
|---|---|
| Salary > ₹21,000/month | Above the eligibility ceiling |
| Apprentices under Apprentices Act | Specifically excluded by the Act |
| Employees who worked <30 days | Below the minimum service threshold |
| Employees dismissed for fraud/violence | Bonus forfeited under Section 9 |
Maharashtra Bonus Calculation: Step-by-Step for FY 2025-26
From "Am I covered?" to "File Form D" — the complete calculation flow.
Step 1: Determine If Your Establishment Is Covered
- Did you have 10+ employees at any point? → Covered in Maharashtra
- Have you ever had 10+ employees in the past? → Still covered ("once covered, always covered")
- Fewer than 10, never exceeded → Not covered
Step 2: Identify Eligible Employees
- Salary ≤₹21,000/month (Basic + DA)
- Worked 30+ days in FY 2025-26
- Not an apprentice
Step 3: Determine the Calculation Base Per Employee
- Salary ≤₹7,000/month: Use actual salary
- ₹7,001–₹21,000/month: Use higher of ₹7,000 or applicable minimum wage
- >₹21,000/month: Not eligible for bonus
- In Maharashtra, since ALL MWs exceed ₹7,000, always use the minimum wage for the employee's scheduled employment and zone.
Step 4: Calculate Allocable Surplus
- Gross profit (as per Section 4, First/Second/Third Schedule)
- Available surplus = Gross profit – depreciation – prior year set-off
- Allocable surplus = 67% of available surplus (for companies not distributing dividends abroad)
Step 5: Determine Bonus Percentage
- If allocable surplus per employee is below 8.33% → still pay 8.33% minimum
- Between 8.33% and 20% → pay the actual percentage from surplus
- Above 20% → pay 20% maximum; set-on excess (carry forward up to 4 years)
Step 6: Calculate, Pay, and File
- Pay by: November 30, 2026 (for FY 2025-26)
- File Form D: Within 30 days of payment
- Maintain: Form A (allocable surplus), Form B (set-on/set-off), Form C (employee-wise bonus details)
New Businesses: The 5-Year Bonus Exemption
Conditions under which new establishments can defer bonus payments.
| Year | Allocable Surplus Exists? | Minimum Bonus Required? |
|---|---|---|
| Year 1–5 | No | No bonus required |
| Any Year 1–5 | Yes | Must pay from surplus |
| Year 6+ | Regardless | 8.33% minimum mandatory |
Set-On and Set-Off — The 4-Year Carry Forward
What happens when surplus is too high or too low in any given year.
| Scenario | Action | Duration |
|---|---|---|
| Surplus > 20% per employee | Pay 20% max. Set-on the excess. | Carry forward up to 4 years |
| Surplus < 8.33% | Pay 8.33% minimum. Set-off the deficit against future surplus. | Carry forward up to 4 years |
| Surplus between 8.33%–20% | Pay the exact surplus %. No set-on/set-off. | — |
How Set-On/Set-Off Works
Form B tracks set-on and set-off balances. This is a rolling 4-year adjustment mechanism — good years offset bad years, and vice versa. If you set-on excess in Year 1, it can cover the deficit in Years 2–5. If you set-off a deficit in Year 1, future surplus (Years 2–5) first covers this deficit before calculating bonus.
Compliance — Forms, Deadlines & Penalties
Maharashtra bonus compliance calendar and penalty structure.
Forms Required
| Form | Purpose | When |
|---|---|---|
| Form A | Computation of Allocable Surplus | Annual — maintained by employer |
| Form B | Set-On and Set-Off Register | Annual — running balance |
| Form C | Employee-wise Bonus Details | Annual — per employee record |
| Form D | Annual Return (filed with Labour Dept) | Within 30 days of bonus payment |
Penalties for Non-Compliance
| Violation | Penalty |
|---|---|
| Non-payment of bonus | Imprisonment up to 6 months and/or fine up to ₹1,000 |
| Using ₹7,000 instead of MW | Recovery of shortfall + arrears + potential prosecution |
| Late payment (after Nov 30) | Interest may apply + prosecution risk |
| Not maintaining Forms A/B/C | Prosecution under Section 28 |
| Not filing Form D | Fine + compliance notice |
How Maharashtra Bonus Differs from Other States
State comparison of bonus cost per unskilled worker at 8.33% minimum.
| State | Unskilled MW (₹/mo) | 8.33% Bonus/Year (₹) | vs Maharashtra |
|---|---|---|---|
| Karnataka (Zone I) | ₹23,376 | ₹23,366 | +68% higher |
| Delhi | ₹18,456 | ₹18,443 | +33% higher |
| Telangana (Zone I) | ₹16,000 | ₹15,994 | +15% higher |
| Haryana | ₹15,221 | ₹15,214 | +9% higher |
| Maharashtra (Zone I) | ₹13,921 | ₹13,916 | Baseline |
| Gujarat (Zone I) | ₹13,325 | ₹13,321 | -4% lower |
| UP (Cat I) | ₹13,690 | ₹13,687 | -2% lower |
| Rajasthan | ₹7,410 | ₹7,407 | -47% lower |
Key Insight
In Karnataka, the same 8.33% bonus costs ₹23,366/year per unskilled worker — almost double Maharashtra's ₹13,916. In Rajasthan, it's just ₹7,407. The state minimum wage directly drives the bonus cost. Maharashtra sits in the mid-range nationally but has the lowest applicability threshold (10 employees vs 20).
Maharashtra Statutory Bonus Calculator
Calculate per-employee and total bonus liability using the correct minimum wage base.
Frequently Asked Questions
Related Resources — Maharashtra Compliance Cluster
Maharashtra 3-Page Compliance Cluster
- Minimum Wages in Maharashtra 2026 — MW drives the bonus calculation base
- Professional Tax in Maharashtra — PT + MW + Bonus = complete compliance
SalaryBox Resources
- SalaryBox Payroll — Auto-calculates Maharashtra bonus using correct MW base (not ₹7,000), generates Forms A/B/C/D
- SalaryBox Blog: Bonus Act 2026 — Latest updates on bonus compliance
Sources & References
| Source | Details |
|---|---|
| Payment of Bonus Act, 1965 (as amended 2015) | Central Act — defines bonus rates, eligibility (₹21,000 ceiling), calculation base (₹7,000 or MW), and penalties |
| Maharashtra Government Notification, April 11, 1984 | Lowered applicability threshold from 20 to 10 employees — Maharashtra-specific |
| Maharashtra Labour Department | State enforcement, Form D filing, Diwali season audits |
| Maharashtra Minimum Wages Notification (Jan–Jun 2026) | Zone-wise minimum wage rates used as bonus calculation base |
| SalaryBox Academy Database | Consolidated Maharashtra bonus data including zone-wise calculations, state comparison, and compliance timeline (updated July 2026) |
Disclaimer
Bonus calculations based on the Payment of Bonus Act, 1965 (as amended 2015) and Maharashtra Government notification dated April 11, 1984. Maharashtra's 10-employee threshold and MW-based calculation apply. The ₹7,000 statutory floor is overridden by the higher state minimum wage. Bonus must be paid by November 30. This guide does not constitute legal or financial advice — consult a qualified labour law professional for compliance in specific scenarios.