Gratuity: Resignation & Termination

Gratuity is a benefit received by an employee for services rendered to an organization. It is applicable to the employees as per the labour law.

The formula given in the above screen is basic input. If leap year to be considered, select the corresponding check box, otherwise by default 365 days will be considered per year.

Set the rules accordingly. If no conditions are required, select No condition checkbox.

Define the condition under If condition tab based on the employee master tags. In the below example, condition is defined for employee status equal to resignation / termination.

User can add any no. of conditions by selecting “Add else if” option.

Slab details

Lets say the slab is defined as above, For less than 1yr of experience, no gratuity will be calculated.

For emp with 8.2 yrs experience, lets calculate the gratuity.

For 5yrs 15days salary

Assume emp salary as 45000 for 30 days.

So for 5yrs, 15days salary = 15*45000/30 = 22500

So for 5yrs, 22500*5 = 112500

Remaining ie, 8.2-5= 3.2yrs, 30days salary will be given.

= 3.2*45000 = 144000

So total gratuity 112500+144000 = 256500

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