EX GRATIA PROVISION

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Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2010 Dear All,

How can we calculate provision for Ex Gratia?

Regards

Rahul Gupta

Rahul Gupta (Expert)
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16 July 2010 Ex-gratia is no way concerned to salary perks. It is a prerogative of the Management of any company to afford to pay some amount to its employees out of their joy, pleasure, happiness, when the Company run in profits. As far as Government employees concern, there is no right to claim Bonus by the employees from the Government. But, however, some of the Governments, granted ex-gratia to its employees as a measure of kindness, pleasure to gain the Employees co-operation and commitment to work. Ex-gratia in other words, a quantum of amount, payable to the employees by a Firm or Company as a measure of gift.

Accordingly, Ex gratia is determined according to the management policy and measures. If the management has any internal policy to make any ex gratia payment then provision for it needs to be paid according to that policy.