Gratuity, Bonus & Leave Encashment: Statutory Employee Benefits Explained
S
Statura Team
Beyond salary, Indian law mandates several employee benefits. Miscalculating them is a common source of disputes and penalties for employers.
Gratuity
Payable to employees who complete 5 years of service, calculated as (15/26) × last drawn monthly salary × years of service, tax-exempt up to ₹20 lakh.
Statutory Bonus
Under the Payment of Bonus Act, employees earning up to the wage ceiling are entitled to a bonus of 8.33% to 20% of annual wages, payable within 8 months of year-end.
Leave Encashment
Accumulated unused leave is encashed at exit per company policy and statutory minimums; tax treatment differs for government and private employees.
Get It Right
Automate these in payroll to stay compliant and dispute-free.
Statura manages payroll, gratuity and statutory benefits compliance for employers.
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