NOTE : The Statutory Calculator featured on this website is provided solely for reference purposes.

Gratuity Calculator

Welcome to our Gratuity Calculator, where you can easily determine your gratuity entitlement according to the Payment of Gratuity Act. Gratuity is a monetary benefit provided by employers to employees as a gesture of gratitude for their long and faithful service. Let’s break down the calculation process with a relatable example.

Let’s imagine you’ve been working at your company for several years, and now it’s time to move on to new endeavours. As a token of appreciation for your dedicated service, your employer is required to provide you with gratuity payment in accordance with the Payment of Gratuity Act. Here’s how it’s calculated:

Formula: Gratuity = (Last drawn basic salary * 15/26) * Number of completed years of service

Illustration: Let’s say your last drawn basic salary was ₹50,000 per month, and you’ve completed 10 years and 6 months of service.

Step 1 : Determine Last Drawn Basic Salary: Your last drawn basic salary is ₹50,000 per month.

Step 2 : Calculate Completed Years of Service: You’ve completed 10 years and 6 months of service. Since the Payment of Gratuity Act considers any fraction of a year as a full year for service exceeding six months, your completed years of service will be considered as 11 years.

Step 3 : Apply the Formula: Gratuity = (₹50,000 * 15/26) * 11 = (₹50,000 * 0.5769) * 11 = ₹28,846.15 * 11 = ₹3,17,307.69

Step 4 : Receive Your Gratuity Amount: Based on the calculation, your gratuity amount would be approximately ₹3,17,307.69.

This illustration demonstrates how gratuity is calculated under the Payment of Gratuity Act. It’s important to note that the actual gratuity amount may vary based on factors such as your length of service, last drawn salary, and any specific provisions in your employment contract.

By understanding the calculation process, you can ensure that you receive the gratuity entitlement you deserve for your years of hard work and dedication. If you have any questions or need further clarification, don’t hesitate to reach out to us. We’re here to help you navigate the complexities of gratuity payments with ease and confidence.

Bonus Calculator

Welcome to our Bonus Calculator, where you can easily calculate your bonus entitlement according to the Payment of Bonus Act. Bonuses are additional monetary rewards provided by employers to employees as a form of incentive for their hard work and contribution to the organization. Let’s illustrate the calculation process with a relatable example:

Imagine you’re the owner of a bakery (an “establishment” under the Act) with more than 20 employees. By law, you need to pay a bonus to your eligible staff:

The Bonus Act sets a minimum AND a maximum bonus amount.

  • Minimum Bonus: This is like a guaranteed minimum wage for bonuses. It’s 8.33% of an employee’s total salary earned in a year (accounting year) OR Rs.100 (for employees above 15 years old), whichever is higher.
  • Maximum Bonus: This is the most you can give as a bonus, and it can be up to 20% of the employee’s salary. However, the company’s financial health (profits) plays a role here.

Here’s how to calculate the bonus for your bakery employee, Sarah:

  1. Find Sarah’s total salary for the accounting year. Let’s say she earns Rs.6,000 per month. So, her yearly salary would be Rs.6,000 * 12 months = Rs.72,000.
  2. Calculate the minimum bonus: 8.33% of Rs.72,000 = Rs.6,000 (which is more than Rs.100).

There are two scenarios now:

  • Scenario 1: Bakery Profits are Good!

You can be generous and offer a higher bonus, say 15% of her salary. So, bonus = 15% of Rs.72,000 = Rs.10,800.

  • Scenario 2: Bakery Profits are Low

Legally, you just need to pay the minimum bonus of Rs.6,000.

Important points to remember:

  • The bonus is calculated on an employee’s “salary or wage,” which typically includes basic salary and dearness allowance (DA).
  • There’s a limit on the salary considered for bonus calculation. Currently, it’s Rs.7,000 per month. So, even if Sarah earns more than Rs.7,000 monthly, the bonus will be calculated on a maximum of Rs.7,000 per month.
  • This is a simplified explanation. The Act has more details on eligibility, deductions, and dispute resolution.

In essence, the Payment of Bonus Act ensures bakery staff (and other eligible employees) get a fair share of the company’s success through a minimum bonus

Maternity Leave Calculator

The Maternity Benefit Act ensures working mothers get paid leave to recover after childbirth and bond with their newborn.

The Maternity Benefit Act provides a clear framework for calculating your maternity leave entitlement. Here’s a breakdown:

Leave entitlement:

  • First and Second Child: 26 weeks (6 months)
  • Third and Subsequent Children: 12 weeks (3 months)

Leave Breakdown:

The 26 weeks for the first two children can be further divided into pre-delivery and post-delivery leave as per your needs:

Pre-delivery Leave (Maximum): Up to 8 weeks before your expected delivery date.

Post-delivery Leave (Minimum): Remaining 18 weeks after delivery (includes the day of delivery).

Illustration:

Meet Priya, a dedicated employee at XYZ Corporation. She’s expecting a baby soon and wants to understand her entitlement to maternity leave under the Maternity Benefit Act.

  1. Eligibility Criteria: Priya is eligible for maternity leave if she has worked in the company for at least 80 days in the 12 months preceding her expected date of delivery.
  2. Duration of Maternity Leave: The Maternity Benefit Act provides for a maximum of 26 weeks of maternity leave, which includes:
    • Prenatal Leave: Priya is entitled to six weeks of maternity leave before her expected date of delivery.
    • Postnatal Leave: After giving birth, Priya is entitled to an additional 20 weeks of maternity leave.
  3. Calculation Example: Let’s calculate Priya’s maternity leave entitlement:
    • Priya’s expected date of delivery is 1st July 2024.
    • She has worked for 80 days in the 12 months preceding her expected date of delivery.
    • Priya is entitled to six weeks of prenatal leave, which she can avail from approximately 17th May 2024 (six weeks before her expected date of delivery).
    • After giving birth, Priya is entitled to an additional 20 weeks of postnatal leave, which she can avail from 1st July 2024 onwards.
  4. Benefits During Maternity Leave: During her maternity leave, Priya is entitled to receive maternity benefit, which is calculated as the average daily wage for the period of her actual absence from work. The average daily wage is calculated based on her wages for the days she has worked in the preceding three months.
  5. Additional Provisions: The Maternity Benefit Act also includes provisions for medical bonus, nursing breaks, and extended maternity leave in case of complications or illness arising from pregnancy or childbirth.

Priya can discuss her maternity leave plans with her employer, ensuring that she receives the benefits and support she’s entitled to under the Maternity Benefit Act.

This simplified illustration provides Priya and other expectant mothers with a clear understanding of their entitlement to maternity leave under the Maternity Benefit Act in India. If Priya has any questions or needs further assistance, she can consult with her employer or a legal advisor for guidance.

Important Notes:

  • There’s no minimum pre-delivery leave. You can choose to take less than 8 weeks if you prefer. However, the total leave (pre + post) cannot exceed 26 weeks.
  • This is the minimum entitlement under the Act. Your employer might offer a more generous policy.

Salary calculator

Imagine minimum wage as a safety net for workers. It’s the lowest legal amount an employer can pay their workers for a specific period (daily or monthly). This ensures basic needs like food and shelter are met.

Key Points to Remember:

  • No Single Rate: There’s no one-size-fits-all minimum wage for India. Each state government sets its own minimum wages for different skill categories (unskilled, semi-skilled, skilled) and zones (rural, urban).
  • Regular Revisions: Minimum wages are reviewed and adjusted periodically to account for rising living costs.
  • Baseline, Not Ceiling: The minimum wage is the floor, not the ceiling. Many companies offer salaries significantly above the minimum wage based on experience and market demand.

Let’s say you’re a salesperson with 3 years of experience in Mumbai. The minimum wage for a skilled worker in Maharashtra (Mumbai’s state) might be ₹18,000 per month. This means your employer cannot legally pay you less than this. However, considering your experience and the competitive job market in Mumbai, your company might offer a salary closer to ₹30,000 per month.

How to Find Minimum Wage Rates:

Visit your state’s labour department website. They usually have a dedicated section outlining minimum wage rates for different categories and zones.

Employee’s Provident Fund calculator

The Employee Provident Fund (EPF) in India is a retirement savings scheme that benefits both employees and employers.

It as a joint investment between you and your employer for your future. Every month, a portion of your salary and your employer’s contribution goes into this fund. This accumulates over your working years, providing you with a lump sum amount upon retirement.

How Does it Benefit Employees?

  • Secured Savings: EPF encourages regular savings towards your retirement, ensuring financial security after you stop working.
  • Employer Contribution: Your employer contributes an equal amount to your EPF, essentially giving you free money for retirement!
  • Interest Earned: The government adds interest to your EPF balance every year, further growing your savings.
  • Tax Benefits: Contributions towards EPF qualify for tax deductions, reducing your taxable income.
  • Partial Withdrawals: Under certain circumstances (like medical emergencies or home purchase), you can withdraw a portion of your EPF corpus before retirement.

Let’s break down the Employee Provident Fund (EPF) in a way that’s easy to understand.

How Does It Work?

If you’re an Indian employee, a portion of your salary likely goes towards the EPF. This is a fantastic scheme where both you and your employer contribute towards your future. Here’s a breakdown:

  • Eligibility: Applies to establishments with 20 or more employees.
  • Contributions:
    • Employee: Contributes 12% of their basic salary + Dearness Allowance (DA) every month.
    • Employer: Matches the employee’s contribution (12%) but splits it into two parts:
      • 8.33% goes towards your Pension Scheme (EPS) (provides pension after retirement).
      • Remaining 3.67% goes into your Employee Provident Fund (EPF) (savings for retirement).

Let’s say your monthly salary (basic + dearness allowance) is ₹20,000. Here’s how to calculate your contribution:

Your Contribution: ₹20,000 x 12% = ₹2,400

Employer’s Contribution (to your EPF): ₹20,000 x 3.67% = ₹734

So, a total of ₹2,400 (your contribution) + ₹734 (employer’s contribution) = ₹3,134 is added to your EPF account each month. The EPFO also adds interest to this amount, currently at 8.1% per year.

Calculating Your PF Contribution:

There’s no complex formula. Just remember:

  • Employee contribution: 12% of your basic salary + DA
  • Employer’s contribution (for EPF): 3.67% of your basic salary + DA

Understanding Your Salary Slip:

Look for sections mentioning “PF”, “Employee PF”, or “EPF”. These will show your monthly contributions and sometimes the running balance.

How to Check PF Balance:

  1. Visit the Government EPF Portal: Start by visiting the official EPF portal provided by the government.
  2. Select Your PF Office Location: Choose the location of your PF office, including the state and regional branch office.
  3. Fill Online Form: Complete the online form with your personal information and the EPF account number displayed on your payslip.
  4. Submit the Form: After verifying the details provided, submit the form for processing.
  5. Receive SMS Notification: If all your records are in order, your EPF balance will be sent to your registered mobile number as an SMS.

How to Transfer EPF Money Online:

  1. Use Universal Account Number (UAN): When changing jobs, EPF can be transferred seamlessly using the Universal Account Number (UAN), which remains the same.
  2. Register on EPF Member Portal: Register on the official EPF member portal and complete the registration process.
  3. Log In: Once you receive your login credentials, log in to the member portal.
  4. Visit Online Transfer Claim Portal: Access the Online Transfer Claim Portal using the same login details.
  5. Request EPF Transfer: Initiate the EPF transfer request online without the need to submit Form 13 if eligible.
  6. Enter Old Employment Details: Provide details of your previous employment as directed.
  7. Authenticate with Employer: Have your previous or new employer authenticate the transfer request.
  8. Receive Mobile PIN: Upon entering the details, you will receive a PIN on your registered mobile number.
  9. Track Application: Use the tracking ID generated to track the status of your application.

Benefits of Contributing to EPF

There are many advantages to participating in the EPF scheme:

  • Secure Retirement Savings: Your contributions and employer contributions build a significant retirement fund.
  • Employer Contribution: It’s like free money towards your golden years!
  • Tax Benefits: Both your contributions and employer contributions qualify for tax deductions.
  • Compound Interest: The interest earned on your contributions grows over time, thanks to compounding.
  • Loan Options: You can avail loans against your EPF balance for specific needs.
  • Partial Withdrawals: Access some funds for emergencies or specific situations.
  • Transferable: Your EPF account moves with you when you change jobs.
  • Post-Retirement Income: The EPS provides you with a monthly pension after retirement.
  • Tax Advantages

Contributing to EPF offers significant tax benefits:

  • Reduced Taxable Income: Your EPF contributions are deducted from your taxable income, lowering your tax liability.
  • Tax-Free Interest: The interest earned on your contributions is not taxed.
  • Tax-Exempt Withdrawals: If you withdraw your EPF balance after five years of continuous service, it’s tax-free.

Important Points:

  • The interest on your PF balance is credited annually by the government.
  • You can usually withdraw your PF partially or fully under certain circumstances (like buying a house, children’s education, or medical emergencies).
  • You can access your PF account online using the EPFO portal (https://passbook.epfindia.gov.in/MemberPassBook/login).

Remember:

  • PF is a long-term saving scheme. The earlier you start contributing, the larger your retirement corpus will be.
  • There are online PF calculators available to estimate your future PF accumulations.

Additional Tips:

  • You can voluntarily contribute more than 12% of your salary towards your EPF for faster accumulation.
  • Explore options for managing your PF corpus after retirement to ensure a steady income stream.

ESI calculator

Employee State Insurance calculation:

Employee State Insurance (ESI) is a social security and health insurance scheme introduced by the Government of India to provide medical and financial benefits to employees and their dependents in case of sickness, maternity, disablement, or death due to employment-related injuries or diseases.

Key Components:

  1. Employee Contribution: A percentage of the employee’s gross monthly salary is deducted as ESI contribution.
  2. Employer Contribution: Employers are required to match the employee’s contribution by making an equal contribution towards ESI.
  3. Coverage: ESI applies to employees earning below a specified wage threshold, working in factories, establishments, or businesses covered under the ESI Act.
  4. Benefits: ESI provides comprehensive medical care, including outpatient, inpatient, maternity, disability, and funeral benefits, to insured employees and their dependents.

Calculation of ESI:

Formula for ESI Contribution:

  • Employee’s Contribution: 0.75% of the employee’s gross monthly salary (basic salary plus dearness allowance).
  • Employer’s Contribution: 3.25% of the employee’s gross monthly salary.

Illustration:

Raj is a sales executive at XYZ Pvt. Ltd., whose gross monthly salary is ₹20,000. Let’s calculate his ESI contribution:

  • Employee’s Contribution: 0.75% of ₹20,000 = ₹150 per month
  • Employer’s Contribution: 3.25% of ₹20,000 = ₹650 per month

So, Raj’s total monthly ESI contribution is ₹800 (₹150 from the employee and ₹650 from the employer).

Understanding ESI Components:

  1. Salary Slip: Raj’s salary slip will display his gross monthly earnings, deductions, and contributions. He can easily identify the ESI deduction and contribution listed on the salary slip.
  2. ESI Card: Upon registration, Raj will receive an ESI card, which he can use to avail medical benefits at ESI hospitals, dispensaries, and clinics.
  3. ESI Benefits: Raj can access a range of medical benefits for himself and his family members, including outpatient treatment, hospitalization, maternity benefits, and more, through the ESI scheme.

By understanding the calculation and components of ESI contributions, Raj can avail of comprehensive healthcare benefits for himself and his family, ensuring their well-being and financial security in times of need.

In summary, Employee State Insurance (ESI) is a crucial social security scheme in India, providing employees like Raj with access to quality healthcare services and financial protection during emergencies. Through regular contributions and understanding each aspect of ESI, employees can secure their health and well-being effectively.