How to enable gratuity in the F&F payout?

Gratuity is a reward employers pay for continuous service of at least five years. It’s based on the last drawn salary and tenure, settled during the FnF process. Keka simplifies gratuity calculation for accuracy and ease.

Begin by navigating to the Org(1) section and selecting the Exits(2) tab. Within this tab, proceed to the Exit process(3), and go to Exits in Progress Phase(4). This section displays a comprehensive list of all employees whose resignations have already been accepted.

To start the settlement process for an employee, select the "Manage(5)" option found in the Actions column. This will bring up a window that presents a summary of all exit actions, along with a detailed Finances section for your review.

This will open a side window, choose the Finances(1) section here and click Review and Finalize(2).

On Page 1 Payable Components, under the Others section, locate the Gratuity option. Enable "Employee is eligible for gratuity payment" to apply it for employees with a minimum of 5 years of service. Now you can configure the gratuity payout using the available options.

Click Save & Next when you are done setting it up.

If your organization is part of the gratuity act, also enable the 'Organization is covered under the Payment of Gratuity Act' option.

In case of more queries, please refer to the other articles.

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