NOTE : The Statutory Calculator featured on this website is provided solely for reference purposes.

Gratuity Calculator

Welcome to our Gratuity Calculator, where you can easily determine your gratuity entitlement according to the Payment of Gratuity Act. Gratuity is a monetary benefit provided by employers to employees as a gesture of gratitude for their long and faithful service. Let’s break down the calculation process with a relatable example.

Let’s imagine you’ve been working at your company for several years, and now it’s time to move on to new endeavours. As a token of appreciation for your dedicated service, your employer is required to provide you with gratuity payment in accordance with the Payment of Gratuity Act. Here’s how it’s calculated:

Formula: Gratuity = (Last drawn basic salary * 15/26) * Number of completed years of service

Illustration: Let’s say your last drawn basic salary was ₹50,000 per month, and you’ve completed 10 years and 6 months of service.

Step 1 : Determine Last Drawn Basic Salary: Your last drawn basic salary is ₹50,000 per month.

Step 2 : Calculate Completed Years of Service: You’ve completed 10 years and 6 months of service. Since the Payment of Gratuity Act considers any fraction of a year as a full year for service exceeding six months, your completed years of service will be considered as 11 years.

Step 3 : Apply the Formula: Gratuity = (₹50,000 * 15/26) * 11 = (₹50,000 * 0.5769) * 11 = ₹28,846.15 * 11 = ₹3,17,307.69

Step 4 : Receive Your Gratuity Amount: Based on the calculation, your gratuity amount would be approximately ₹3,17,307.69.

This illustration demonstrates how gratuity is calculated under the Payment of Gratuity Act. It’s important to note that the actual gratuity amount may vary based on factors such as your length of service, last drawn salary, and any specific provisions in your employment contract.

By understanding the calculation process, you can ensure that you receive the gratuity entitlement you deserve for your years of hard work and dedication. If you have any questions or need further clarification, don’t hesitate to reach out to us. We’re here to help you navigate the complexities of gratuity payments with ease and confidence.

Bonus Calculator

Welcome to our Bonus Calculator, where you can easily calculate your bonus entitlement according to the Payment of Bonus Act. Bonuses are additional monetary rewards provided by employers to employees as a form of incentive for their hard work and contribution to the organization. Let’s illustrate the calculation process with a relatable example:

Imagine you’re the owner of a bakery (an “establishment” under the Act) with more than 20 employees. By law, you need to pay a bonus to your eligible staff:

The Bonus Act sets a minimum AND a maximum bonus amount.

  • Minimum Bonus: This is like a guaranteed minimum wage for bonuses. It’s 8.33% of an employee’s total salary earned in a year (accounting year) OR Rs.100 (for employees above 15 years old), whichever is higher.
  • Maximum Bonus: This is the most you can give as a bonus, and it can be up to 20% of the employee’s salary. However, the company’s financial health (profits) plays a role here.

Here’s how to calculate the bonus for your bakery employee, Sarah:

  1. Find Sarah’s total salary for the accounting year. Let’s say she earns Rs.6,000 per month. So, her yearly salary would be Rs.6,000 * 12 months = Rs.72,000.
  2. Calculate the minimum bonus: 8.33% of Rs.72,000 = Rs.6,000 (which is more than Rs.100).

There are two scenarios now:

  • Scenario 1: Bakery Profits are Good!

You can be generous and offer a higher bonus, say 15% of her salary. So, bonus = 15% of Rs.72,000 = Rs.10,800.

  • Scenario 2: Bakery Profits are Low

Legally, you just need to pay the minimum bonus of Rs.6,000.

Important points to remember:

  • The bonus is calculated on an employee’s “salary or wage,” which typically includes basic salary and dearness allowance (DA).
  • There’s a limit on the salary considered for bonus calculation. Currently, it’s Rs.7,000 per month. So, even if Sarah earns more than Rs.7,000 monthly, the bonus will be calculated on a maximum of Rs.7,000 per month.
  • This is a simplified explanation. The Act has more details on eligibility, deductions, and dispute resolution.

In essence, the Payment of Bonus Act ensures bakery staff (and other eligible employees) get a fair share of the company’s success through a minimum bonus

Maternity Leave Calculator

The Maternity Benefit Act ensures working mothers get paid leave to recover after childbirth and bond with their newborn.

The Maternity Benefit Act provides a clear framework for calculating your maternity leave entitlement. Here’s a breakdown:

Leave entitlement:

  • First and Second Child: 26 weeks (6 months)
  • Third and Subsequent Children: 12 weeks (3 months)

Leave Breakdown:

The 26 weeks for the first two children can be further divided into pre-delivery and post-delivery leave as per your needs:

Pre-delivery Leave (Maximum): Up to 8 weeks before your expected delivery date.

Post-delivery Leave (Minimum): Remaining 18 weeks after delivery (includes the day of delivery).

Illustration:

Meet Priya, a dedicated employee at XYZ Corporation. She’s expecting a baby soon and wants to understand her entitlement to maternity leave under the Maternity Benefit Act.

  1. Eligibility Criteria: Priya is eligible for maternity leave if she has worked in the company for at least 80 days in the 12 months preceding her expected date of delivery.
  2. Duration of Maternity Leave: The Maternity Benefit Act provides for a maximum of 26 weeks of maternity leave, which includes:
    • Prenatal Leave: Priya is entitled to six weeks of maternity leave before her expected date of delivery.
    • Postnatal Leave: After giving birth, Priya is entitled to an additional 20 weeks of maternity leave.
  3. Calculation Example: Let’s calculate Priya’s maternity leave entitlement:
    • Priya’s expected date of delivery is 1st July 2024.
    • She has worked for 80 days in the 12 months preceding her expected date of delivery.
    • Priya is entitled to six weeks of prenatal leave, which she can avail from approximately 17th May 2024 (six weeks before her expected date of delivery).
    • After giving birth, Priya is entitled to an additional 20 weeks of postnatal leave, which she can avail from 1st July 2024 onwards.
  4. Benefits During Maternity Leave: During her maternity leave, Priya is entitled to receive maternity benefit, which is calculated as the average daily wage for the period of her actual absence from work. The average daily wage is calculated based on her wages for the days she has worked in the preceding three months.
  5. Additional Provisions: The Maternity Benefit Act also includes provisions for medical bonus, nursing breaks, and extended maternity leave in case of complications or illness arising from pregnancy or childbirth.

Priya can discuss her maternity leave plans with her employer, ensuring that she receives the benefits and support she’s entitled to under the Maternity Benefit Act.

This simplified illustration provides Priya and other expectant mothers with a clear understanding of their entitlement to maternity leave under the Maternity Benefit Act in India. If Priya has any questions or needs further assistance, she can consult with her employer or a legal advisor for guidance.

Important Notes:

  • There’s no minimum pre-delivery leave. You can choose to take less than 8 weeks if you prefer. However, the total leave (pre + post) cannot exceed 26 weeks.
  • This is the minimum entitlement under the Act. Your employer might offer a more generous policy.

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