Organizations can now configure the work week used for gratuity calculations, ensuring accurate Years of Service (YOS) computation in line with the Payment of Gratuity Act, 1972.
What's New?
A new Work Week for Gratuity Calculation setting has been added to the Gratuity configuration, allowing you to choose between:
- 5-Day Work Week
- 6-Day Work Week (Default)
The selected work week determines the threshold used to evaluate whether a partial year qualifies toward gratuity Years of Service.
Navigation:
Org → Exit → Exit Process → Employee → Manage → Finances → Review & Finalize → Others → Gratuity
Why This Matters
Previously, gratuity calculations always used a fixed 240-day threshold. However, organizations following a 5-day work week are required to use a 190-day threshold under the Payment of Gratuity Act.
With this enhancement, organizations can:
- Calculate gratuity eligibility accurately based on their work week.
- Stay compliant with statutory requirements.
- Eliminate discrepancies in Years of Service calculations.
Reduce support queries related to gratuity eligibility.
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