Wages, PF and ESIC get the attention — but bonus, gratuity and leave are statutory too, and missing them is a common source of disputes and claims. Here is the short version.
Statutory bonus
Under the Payment of Bonus Act, eligible employees are entitled to an annual bonus of 8.33% to 20% of wages, subject to the eligibility wage ceiling. It is computed and paid annually, and recorded in a bonus register.
Gratuity
Under the Payment of Gratuity Act, a worker who completes five years of continuous service is entitled to gratuity of about 15 days’ wages for each completed year, payable on exit (and on death or disablement, without the five-year condition).
Leave & holidays
- Earned leave — typically one day for every 20 days worked, under the Factories Act.
- Weekly off and national/festival holidays as notified.
- Leave balances should be tracked and encashed correctly at exit.
Who is responsible
These are the employer’s obligations — and on default, the principal employer’s concern. VedhanHR provisions bonus and gratuity from day one and tracks leave on the system, so entitlements are funded and proven, not discovered at exit.