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A statutory bonus is a mandatory bonus that employers must pay to eligible employees under the Payment of Bonus Act, 1965 in India. It is a financial reward based on an employee's salary and the company's profitability.

1. Eligibility: Employees earning up to ₹21,000 per month.
2. Bonus Range: 8.33% to 20% of annual salary.
3. Calculation: Based on company profits and employee salary.

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