Adding Gratuity Details

Gratuity is a voluntary payment made by an organization to its employees in gratitude for the services offered by the employees. Gratuity is one of the many benefits offered by an organization to its employees upon leaving the job.

As an administrator, you are required to add the gratuity details of employees such as the minimum number of years of service employees have to complete to avail gratuity and the number of salaried days and so on.

To add bonus details:

1. On the PW Admin menu, under Payroll Admin, click Gratuity Master.

The Gratuity rule page appears.

2. Under Eligibility, in the Min. No. of Years drop-down box, select the minimum number of years the employee has to serve the organization to be eligible for payment of gratuity.

Note:   Eligibility for gratuity also depends on the gratuity policy of the organization. For example, the   organization may choose to pay for all exit employees, in the final settlement, irrespective of the number of years served in the organization (less than 4 years and 8 months).

3. Do any of the following:

• To enable gratuity calculation as a round off to the next year, select the Round Off check box.

• If the Round Off check box is selected, then in the After Completion of Months text box, enter the number of months of service to be completed for gratuity calculation.

• To enable gratuity calculation on the actual served days, select the Actual check box.

4. In the No. of Days Salary text box, enter the number of days for gratuity calculation.

5. In the No. of Days in Month text box, enter the number of days for gratuity calculation in a month.

6. Under Exemption, in the Min. No. of Years drop-down box, select the minimum number of years for gratuity exemption.

7. Click Save. The gratuity details are saved in the application.

Note:          Fields marked with * are mandatory and cannot be left blank. System will not allow you to save the page if any of the                
                 mandatory fields are not entered.

Note:        Round Off means that the gratuity calculation is rounded off to the next year after the
                employee has served the organization for the number of months specified by After
                Completion of Months.

Note:      Actual means gratuity is calculated only till the actual number of months the employee has  served the organization.

Click to know more:

Payroll Admin