rakshagupta82 (n/a) 29 December 2007

Calulation of Exgratia, Gratuity, Bonus

Pls help me for the calculation of Exgratia, Gratuity, Bonus and what is the maximum limit for that

4 Replies

Shambasiv (n/a) 29 December 2007

[font=""trebuchet ms""]Minimum bonus payable is 8.33% and maximum is 20%. Bonus is payable annually within 8 months from close of accounting year. Bonus is payable to all employees whose salary or wages do not exceed Rs 3,500 per month provided they have worked for at least 30 days in the accounting year. However, for calculation of bonus, maximum salary of Rs 2,500 is considered.

Gratuity is payable @ 15 days wages for every year of completed service. In the last year of service, if the employee has completed more than 6 months, it will be treated as full year for purpose of gratuity. Maximum gratuity payable is Rs 3.50 lakhs. [Section 4(3)]. [Of course, employer can pay more. Employee has also right to get more if obtainable under an award or contract with employer, as made clear in section 4(5)].

Exgratia is an amount given by the company and it is not statutory.
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rakshagupta82 (n/a) 31 December 2007

Thanks Anjali.......

rajnish_sapra (n/a) 31 December 2007

dear anjali,

in gratuity if an employee leaves & work for 4 years & 7 months then we will pay for 5 years or 4 years

please let me know

regards

Rajnish Sapra

smn (a) 21 March 2010

Maximum gratuity payable is Rs 3.50 lakhs for non government employees and 10 Lakh for Government employees. [Section 4(3)] [Of course, employer can pay more. Employee has also right to get more if obtainable under an award or contract with employer, as made clear in section 4(5)].

is this correct ????