Setting up Gratuity for your Organization
GRATUITY
Setting up Gratuity for your Organization
Enable gratuity computation and liability tracking — with eligibility rules, accrual policies, and payout triggers.
Gratuity setup
👥 WHO USES THIS
â–¸Payroll admins enabling gratuity
â–¸Finance provisioning liabilities
â–¸HR defining eligibility
✨ WHAT YOU'LL ACHIEVE
â–¸Configure gratuity eligibility
â–¸Accrue liabilities monthly
â–¸Trigger payouts on exit
Navigate to Tax and Statutory Compliances → Statutory Components → Gratuity
Enable the Gratuity Option.
Set the Eligibility Criteria(eg: Minimum years of Service)
The calculation formula in the Gratuity settings is pre-defined as: Last Drawn Basic × 15 ÷ 26 × Completed Years of Service.
Save the configuration.
The system calculates gratuity automatically based on the employee’s last drawn basic salary and completed years of service.
If the employee is not eligible, no gratuity will be displayed.
The calculation is triggered at the time of Full and Final Settlement.
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