Gratuity is a statutory benefit provided to the employees who have rendered continuous service for at least five years. The gratuity benefit is payable on cessation of employment either by resignation, death, retirement or termination. The last drawn basic salary is taken as the basis for the calculation.
For Example, In India, as per statute, the employee is eligible for 15 days pay for each completed year of service after completion of five continuous years of service.
The Gratuity Summary report provides comprehensive information on the Gratuity Eligible Salary and the Total Gratuity amount that is liable to be given to the employees.
Go to Gateway of Tally > Display > Payroll Reports > Gratuity.
Gratuity Summary report displays a summary of all the Employee Names along with their Date of Birth , Date of Joining the Organisation, as well as the Gratuity Eligible Salary and the Total Gratuity Amount liability for the month.
Note: the Gratuity Amount column is empty in the above report as the duration of employment is less than 60 months as defined in the Gratuity Pay Head Creation .
● F5: Employee-wise : Click on F5: Employee-wise or press F5 to view the Employee Wise Gratuity Report.
● Ctrl+F7: Employee Filters : Click Ctrl+F7: Employee Filters or press Ctrl+F7 to filter the Employee Category wise and Employee/Group wise details in Gratuity Report.
● F6: Till Date : Click on F6: Till Date or press F6 to view the Gratuity Liability report till date.
Note: Gratuity Liability will be displayed only when the employees Date of Joining is more than 5 years from the present date or the period selected.
Click F12: Configure button from Gratuity Report screen to display the Configurations options as shown:
● Show Employee Number : This option should be set to Yes to display the Employee Number in the Gratuity Report.
● Show Date of Birth : This option should be set to Yes to display the Employee date of birth in the Gratuity Report.
● Show Zero Valued Employees also : This option should be set to Yes to remove the name of the employees without Gratuity computation during the given period.
You can drill down to view the Gratuity Details for each employee as shown:
Go to Gateway of Tally > Display > Payroll Reports > Gratuity
Select an employee by pressing Spacebar and then Enter to view the Gratuity Details report.
The Gratuity Details report provides a complete break up of the total gratuity amount as on a particular date along with details of eligible salary for gratuity calculation and total number of months for which the worker is employed.
Since one year of continuous service by an employee is mandatory for receipt of gratuity in the UAE, the Gratuity Amount for the first year is zero and so the same is not displayed in this report.
For details on button options in Gratuity Summary report, click here .
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