How to enable gratuity in the F&F payout?

Gratuity is a sum of money that employers pay to employees as a reward for their services during their employment period. It is only applicable when an employee has worked for a minimum of five consecutive years without any breaks in service. Gratuity is calculated based on the employee's last drawn salary and years of service, and it is paid as part of the employee's full and final settlement when they leave the organization. Keka includes gratuity calculation in the FnF process, ensuring accurate and easy calculation.

To do so, click on the Org (1) tab. Find Exits (2) and choose In Exit Process (3). Now, find the employee's name using the search bar. Then, click on the 3 dots under Actions. From the options that pop up, click on Process & Settle (4). 

On the next page that opens after clicking on Process & Settle, continue to step 3 (PAYABLES). Under Gratuity, check the box against the dialogue that says: 'Employee is eligible for gratuity payment (minimum 5 years of service in company).

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

Now you can configure the gratuity payout using the available options.

It is hoped that this document was helpful. In case of more queries, please refer to the other articles or talk to our product experts.