Introduction
Keka now allows organizations to configure the applicable work week for gratuity calculations.
Under the Payment of Gratuity Act, 1972 – Section 2A, the number of days required for a partial year to count toward Years of Service (YOS) differs based on the organization's working pattern.
To support this requirement, a new setting has been introduced that lets organizations choose whether gratuity calculations should follow a 5-day or 6-day work week model.
This helps ensure accurate and compliant gratuity eligibility calculations.
Work Week Setting for Gratuity Calculation
A new configuration option, Work Week for Gratuity Calculation, is available within the Gratuity settings.
Available options:
- 5-Day Work Week
- 6-Day Work Week (Default)
Navigation:
Org → Exit → Exit Process → Employee → Manage
2. Finances → Review & Finalize
3. Others → Gratuity → Organization is eligible for gratuity under the Payment of Gratuity Act
Once configured, the selected work week determines the threshold used to calculate whether a partial year should be counted toward gratuity Years of Service.
Why This Change Matters
Previously, Keka supported only a fixed 240-day threshold for gratuity Years of Service calculations.
However, according to Section 2A(2)(a)(i) of the Payment of Gratuity Act, 1972, organizations operating on fewer than six working days a week must use a 190-day threshold.
Without this flexibility, organizations following a 5-day work week could experience:
- Incorrect Years of Service calculations
- Non-compliant gratuity computations
- Employee eligibility discrepancies
- Increased support queries and escalations
This enhancement ensures organizations can configure gratuity calculations according to their operational work week and statutory requirements
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