Open HRMS Gratuity Settlement
Create Gratuity Settlements for Employees During Resignation.
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Key Heighlights
Managers can create Gratuity Settlements of Employees.
A settlement can be created only if the employee has any running contract.
Manager can create different Gratuity Configurations.
The Gratuity Amount is calculated based on a predefined equation.
If the wage type is hourly, then gratuity payment is calculated as employee basic salary * Employee Daily Wage Days * gratuity configuration rule percentage * gratuity calculation years.
If the wage type is monthly, then gratuity payment is calculated as employee basic salary * (Working Days/Employee Daily Wage Days) * gratuity configuration rule percentage * gratuity calculation years.
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Gratuity configuration
You can create a Gratuity Settlement from payroll configuration. Payroll→Configuration→Gratuity Configuration. Set up the gratuity configuration and specify the contract type. If the contract type is limited, and you have not specified an end date for the contract, the limited type gratuity configuration will be applied during the gratuity settlement.
Employee Contract
Now create a contract for the employee and set up the wage type.
Gratuity Settlement
You can create a gratuity settlement from the 'End of service' menu. Payroll→End of service
Gratuity Amount Calculation
By selecting the employee, if the employee has a running contract, a contract type of employee gets selected, And gratuity amount gets calculated. Gratuity payment is calculated based on a wage type in the contract form. If a wage type is hourly, then gratuity payment is calculated as employee salary * Total number of days employee worked * gratuity configuration rule percentage * employee gratuity years. If wage type is monthly, then gratuity payment is calculated as (employee salary/Total number of employee wage days) * Total number of days employee worked * gratuity configuration rule percentage * employee gratuity years.
Managers can create Gratuity Settlements of Employees.
A settlement can be created only if the employee has any running contract.
Manager can create different Gratuity Configurations.
The Gratuity Amount is calculated based on a predefined equation.
If the wage type is hourly, then gratuity payment is calculated as employee basic salary * Employee Daily Wage Days * gratuity configuration rule percentage * gratuity calculation years.
If the wage type is monthly, then gratuity payment is calculated as employee basic salary * (Working Days/Employee Daily Wage Days) * gratuity configuration rule percentage * gratuity calculation years.
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If the employee does not have an active contract, the gratuity settlement cannot be created. An employee must have a running contract in order for the settlement process to proceed.
For employees with
an hourly wage, the
gratuity payment is
calculated as
follows:
Gratuity Payment =
Basic Salary ×
Employee Daily Wage
Days ×
Gratuity
Configuration Rule
Percentage ×
Gratuity
Calculation Years
For employees with a
monthly wage, the
gratuity payment is
calculated as
follows:
Gratuity Payment =
Basic Salary ×
(Working Days /
Employee
Daily Wage Days) ×
Gratuity
Configuration Rule
Percentage ×
Gratuity Calculation
Years
Latest Release 18.0.1.0.0
1st August, 2025- Initial Commit
