Hi, in this post we will be seeing the Gratuity Projection and Gratuity Calculation in Saral PayPack.
Gratuity is a sum of money paid to an employee at the end of a period of employment. If an employee works for a minimum of 5 years in an organization, then on leaving the organization the employee can claim Gratuity.
Read at the below link to know more on Gratuity.
In Saral PayPack, we can first have a projection of gratuity payable and then calculate the actual gratuity when the employee leaves the organization.
First, we will see the process of Gratuity Projection were we will be able to get the details of the projection of Gratuity payable to an employee.
To see this, goto Gratuity/ Encashment/Bonus Projection under Pre Salary Transaction menu
In the next window, select the Type of Projection as Gratuity and click on Next
Next, under the Projection Settings screen, select the type of setting based on which gratuity is to be calculated i.e. Theoretical or Earned Salary to be considered based on which Gross Salary or only specific salary heads are to be considered for the calculation.
Enable Consider Only Who Completed 5 Years of Service option to calculate the gratuity amount for only those employees who have completed 5 years of service.
Enter the Date of projection as on which the projection has to be computed.
Click on Projection and the gratuity as on the given date will be computed and displayed for the employees with their details and the gratuity amount.
This can be exported to an Excel sheet by clicking on To Excel.
Now that the projection is calculated, we will see the process of Gratuity computation when the employee resigns.
Before going to the computation screen, enable the Gratuity option in the Company Details window under the Initial Settings menu.
Next, goto Gratuity under Pre Salary Transactions menu.
The Gratuity computation will be displayed. Select the employee from the dropdown list for whom gratuity has to be calculated.
Note: Only the employee names for whom Date of Leaving is entered in Employee Master will be listed in this window.
When the employee has selected the details related to the employee like Date of Joining, Date of Leaving, Maximum Gratuity, Salary and No. of Years of employment will be auto fetched.
Select if the calculation will be made based on Theoretical salary or Earned salary and then click on the “C” button next to Salary field to consider the salary heads or gross salary for the computation.
Select the Payment mode for disbursement of the amount. If the mode is Include in FFS, then the amount has to be considered while making FFS.
If the mode is Cash or Cheque, then click on the “…” button and provide the required details.
Now, click on Calculate, and the amount is calculated based on the salary head selected.
Note: Rs. 20,00,000.00 is the exemption limit for Gratuity. Click on Save and update the gratuity details.
This completes the process of Gratuity computation in Saral PayPack.