Hi, kindly help me to understand what the Ex-Gratia component is in a salary slip and what its limit is. One of my friends is working in a call center where her salary is deducted for ESIC, PF, and PT. However, an extra Rs. 800 is also being deducted. The company is not providing any satisfactory reason for this deduction. Can anybody help me give her proper advice?
From India, Nasik
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For your first point, Ex-Gratia is an amount given after the completion of your employment with the organization. It is not bound by any legal obligation to pay Ex-Gratia. When an employer is not applicable for a bonus, in such cases, the employer may decide to give Ex-Gratia.

Clarification Needed

Can you elaborate on the second point so we can provide you with a correct reply?

From India, Mumbai
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DI
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Hi, Sorry, i tried to put as a table but it couldnt. Kindly check the attachment.
From India, Nasik
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File Type: docx salary break up.docx (11.4 KB, 136 views)

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In general terms, ex-gratia is a term used to mean apart from the salary or that which is not a part of the salary. For example, some organizations give a certain amount when an employee dies to their legal heirs as ex-gratia. If this amount is being deducted from your friend's salary, please find out the reason for the deduction.

Regards,
Srinivas

From India, Hyderabad
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SPKR
32

Understanding Ex-Gratia in Salary Slips

Amount paid as a matter of gratis is Ex-Gratia. Usually, Ex-Gratia is paid in lieu of a bonus or to the legal heir when an employee dies. It is unclear why Ex-Gratia is included in the salary slip. Please refer to your appointment order or personally consult your HR department to understand the components of your salary slip.

Regards,
SPKR

From India, Bangalore
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