Gratuity and statutory bonus — calculated correctly, every time
Two of the most litigated statutory obligations in Indian labour law, handled automatically. Every exit, every year-end.
Payment of Gratuity Act, 1972
Gratuity
Formula
(Basic + DA) × 15 × Years of service ÷ 26
- Eligibility: 5 years continuous service (4 years 240 days counts for piece-rate workers)
- Tax-free ceiling: ₹20 lakh (enhanced from ₹10L in 2018)
- Payment deadline: within 30 days of separation; 10% p.a. interest on delayed payment
- Applicability: all establishments with 10 or more employees
- Labour Codes: under Code on Wages, the definition of "wages" changes — platform handles both legacy and new regime
- Forfeiture: possible for wilful omission, negligence, or misconduct causing loss or damage
Payment of Bonus Act, 1965
Statutory Bonus
Bonus Base
₹7,000/month or applicable minimum wage, whichever is higher
- Applicability: establishments with 20 or more employees
- Eligible employees: those earning ≤ ₹21,000/month
- Minimum bonus: 8.33% of annual wages (or ₹100, whichever is higher)
- Maximum bonus: 20% of annual wages
- Payment deadline: within 8 months of close of accounting year
- Allocable surplus: determines whether minimum or higher bonus applies for the year
Worked examples
8 years service, ₹35,000 basic
Well within the ₹20 lakh tax-free ceiling. Platform computes this automatically at the time of F&F settlement.
₹18,000/month salary (eligible employee)
Actual bonus paid depends on allocable surplus. Platform applies the correct rate automatically after surplus calculation.
What the platform computes automatically
No spreadsheets. No manual lookups. OpticompBharat runs these calculations in the background at every relevant event.
- Gratuity amount computed on every employee separation — no manual input required
- Automatic detection of 5-year continuous service threshold (including 4y 240d rule for piece-rate workers)
- Dual-regime support: legacy Payment of Gratuity Act and Code on Wages definition of 'wages'
- Forfeiture flag raised automatically when misconduct or damage is recorded
- Statutory bonus eligibility check against ₹21,000/month ceiling for each employee
- Bonus base capped at ₹7,000/month or applicable state minimum wage — whichever is higher
- Minimum (8.33%) and maximum (20%) bonus computed from allocable surplus
- 8-month payment deadline tracker with compliance calendar alerts
- Payable amounts surfaced in Full & Final settlement workflow
- Audit-ready computation trail for inspector visits and litigation defence
Non-compliance penalties
Payment of Gratuity Act
- Fine up to ₹20,000 for non-payment
- Imprisonment up to 2 years for wilful default
- 10% p.a. interest on delayed payment (beyond 30 days)
Payment of Bonus Act
- Fine up to ₹20,000 for wilful non-payment
- Imprisonment up to 6 months for wilful default
- Liability arises if not paid within 8 months of accounting year close
Get every exit right — automatically.
Gratuity, bonus, F&F settlement, statutory registers — all included in your free 1-year trial. Up to 50 employees.