Gratuity is a benefit provided by the employer to an employee in recognition of their service during their employment tenure. While it is commonly disbursed upon retirement, there are circumstances where it may be paid earlier, subject to specific criteria.

Within BizCentric HR, you can oversee Gratuity Payments for employees, adhering to various Gratuity Rules that may differ depending on the region or jurisdiction.

To access the Gratuity go to:

> Home > Payroll > Gratuity

1. Prerequisites

Before creating a Gratuity, it is advised to create the following:

1. Employee
2. Gratuity Rule
3. Salary Component

2. How to create Gratuity

1. Got to Gratuity > New
2. Select Employee and Gratuity Rule. On selecting it will calculate Current Work Experience and Total Gratuity Amount based on Gratuity rule and relieving date.
3. Check checkbox Pay via Salary Slip. if you want gratuity payment through Salary Slip.
4. Save and Submit

3. Gratuity Payments Methods

In BizCentric HR, we allow you to pay the amount via Salary Slip or Payment Entry.

3.1 Payment via Salary Slip

To pay the Gratuity amount via Salary Slip you need to check the checkbox Pay via Salary Slip*. Select *Payroll Date* and *Salary Component, which will appear on Check.

On Submit, it will automatically create Additional Salary with respective Payroll Date and Salary Component.

Payment via Payment Entry

To process the Gratuity payment through a Payment Entry, ensure that the option “Pay via Salary Slip” is unchecked. This action will enable you to choose the Payable Account, Expense Account, and Mode of Payment.

Upon submission of the record, click on the “Create Payment Entry” button. This action will take you to the Payment Entry Form, where you can input the necessary details, save the entry, and then submit it.