Setting up Gratuity for your Organization

Setting up Gratuity for your Organization

  • 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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