Streamlining Employee Gratuity Management with Empress

Guides & Tutorials
1

Introduction

Gratuity is a form of financial reward provided by employers to their employees in recognition of their service throughout their tenure. This payment is typically offered at retirement, but can also be paid out earlier, depending on various factors such as regulations and company policy.

With Empress, managing these gratuity payments is simplified. You can create customized Gratuity Rules to cater to different policies, geographical locations, and local regulations.

To access this feature, follow this path:

Home > Payroll > Gratuity

Getting Started with Gratuity

Before you can create a Gratuity, there are some prerequisites:

  1. Register the specific Employee in the system
  2. Set up the relevant Gratuity Rule
  3. Define the Salary Component

How to Create a Gratuity

To set up a gratuity:

  1. Navigate to Gratuity > New
  2. Select the relevant Employee and Gratuity Rule. The system will automatically calculate the Current Work Experience and Total Gratuity Amount, based on the selected Gratuity rule and the employee’s relieving date.
  3. If you wish to process the gratuity payment through the Salary Slip, check the Pay via Salary Slip checkbox.
  4. Save and Submit

Gratuity Payment Methods

Empress offers two methods for gratuity payment: via Salary Slip or Payment Entry.

Payment via Salary Slip

To process the Gratuity amount through a Salary Slip:

  1. Check the Pay via Salary Slip checkbox.
  2. Set the Payroll Date and Salary Component. These details will be reflected on the Salary Slip.

After submission, the system will automatically generate an Additional Salary record with the respective Payroll Date and Salary Component.

Payment via Payment Entry

To process the Gratuity amount via Payment Entry:

  1. Ensure that the Pay via Salary Slip checkbox is unchecked.
  2. You can now select the Payable Account, Expense Account, and Mode of Payment.

Once the record is submitted, click on the “Create Payment Entry” button. This will take you to the Payment Entry Form. Fill in the necessary details, save, and submit.

Conclusion

Empress’s Gratuity feature simplifies the process of managing and paying employee gratuities, making this necessary task less time-consuming and more efficient. This feature offers flexibility in payment methods and rules, catering to your business’s unique needs.

For additional assistance, please refer to Empress’s in-depth documentation or contact our support team.