Hi,
Bonus is applicable when an employee with a maximum gross monthly pay of Rs. 3500.00 is considered; individuals earning above this amount are not eligible to receive a bonus. The minimum bonus that can be paid to an employee is limited to Rs. 2500 (depending on the period of their presence), while the maximum bonus can be up to 20%. An employee who has worked for at least 30 days in a year is eligible to receive a bonus.
Gratuity is a reward from the employer for an employee's honest, diligent, and continuous 5 years of service. The company pays a salary equivalent to 15 days in a year; if an employee has worked for 5 years, they are eligible to receive 2.5 months' pay (calculated based on their last drawn salary).
The formula for gratuity calculation is as follows:
gratuity = salary x 15 x years of working / 26
With best regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)