Understanding Ex-gratia Payments and Eligibility Criteria in Case of Company Losses

Hi,

I am working in the public sector for 1.5 years. Our company is experiencing losses, so I need details on the eligibility criteria for Diwali ex-gratia.

Dear Mr. Reddy,

Ex gratia is any amount that management decides to pay at their will. For the bonus, kindly check the attachment. If the employee is ESIC applicable, then we need to deduct 1.75% from his share of the total amount of ex gratia.

Regards,
Nikhil

Dear Reddy,

Payment of ex-gratia is not statutory. If your company is in a loss, it is quite natural that the employer will hesitate to pay ex-gratia. If your monthly salary (generally basic + DA) is Rs. 10,000 or below, you are eligible for a bonus even if your company is in a loss.

Abbas.P.S