Joining bonus clawback calculator
Joining bonuses come with a lock-in. Leave before it ends and you repay, usually pro-rated for the months you did serve.
The trap is that most contracts require repayment of the gross amount, while you only ever received the net. The tax your employer deducted is gone, and getting it back is a separate fight with the tax department, not with your employer.
Amount to repay
₹1,75,000
₹54,600 of that is money you never actually received
- Bonus, gross
- ₹3,00,000
- Tax deducted at the time
- - ₹93,600
- What actually reached you
- ₹2,06,400
- Months served
- 10 of 24
- Months unserved
- 14
- Repayable amount
- ₹1,75,000
- The gross-versus-net gap
- ₹54,600
Recoverable only through your tax return, and not always then
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How this is worked out
- Unserved months are the lock-in period minus the months you will have completed.
- A pro-rata clause charges the bonus scaled by the unserved share of the lock-in.
- The net you received is the gross less whatever tax was withheld at the time.
- The gap is the difference between what you repay and the proportionate amount you actually banked.
What this does not cover
- Your new employer will sometimes cover a clawback as part of the offer. Ask before you accept the loss.
- Whether you can reduce your taxable salary by a repaid bonus has gone both ways at tribunal. Keep every document.
- Some contracts also claw back relocation costs and training fees on the same clock.
- The clawback is usually deducted from your full and final settlement rather than invoiced separately.
Questions people ask
- Do I repay the gross bonus or the net I received?
- Almost always the gross, because that is what most contracts say. It means you are out of pocket by the tax that was already deducted, and recovering that is a matter for your tax return rather than your old employer.
- Can I claim the tax back on a repaid bonus?
- You can try, by reducing the salary reported for that year, and it has succeeded at tribunal. It has also failed. Get a certificate from your employer confirming the repayment before you file.
- Is a clawback clause enforceable?
- Generally yes, if it is a genuine pre-estimate of loss rather than a penalty, and if you actually signed it. Courts have been less friendly to clauses that read as punishment for leaving.
Where these figures come from
Rates and rules on this page were last checked against the source on . Tax law changes; check the source before you rely on a number for a decision.
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