Gratuity Rule

This feature is new in Version 13 and will be part of a separate Payroll Module.

Gratuity Rules are rules made by the Central or State that are used to figure out how much Gratuity to give.
You can set different Gratuity Rules in Frappe HR for different regions.

To get to the Gratuity Rule, go to:Home > Payroll > Rule for Gratuity

It is a good idea to make the following things before making a Gratuity Rule:

Go to Gratuity Rule > New

Choose the parts that apply. These parts of the salary are used to figure up the gratuity.
Choose "Calculate Gratuity Amount based on" and then "Define Gratuity Rule."
Save Gratuity Rule

Some of the extra things that are used to figure out the tip amount are listed below.

The Round Off Work Experience Method Finish up what you're doing right now. For instance, an employee with three years and six months of experience will be counted as having four years of experience.
Get the Exact Completed Year.

Example of the gratuity rule

Current slab: If the Gratuity Amount is based on the Current Slab, the amount will equal the sum of the Applicable Earnings Components times the Work Experience (in years) times the Fraction of Applicable Earnings. If an employee has worked for five years, they are in the third slab based on the Gratuity Rules/Slab above.
*Here's how to figure out the Gratuity Amount:
amount of the gratuity is 5 0.467 (Arrear + Basic)
Sum of all previous slabs: If the Gratuity Amount is based on the total of all previous slabs, then the amount will be the sum of the products of each slab up to the year of experience and the total of the Applicable Earnings Component. If an employee has been with the company for five years, the Gratuity Amount will be calculated as follows, based on the Gratuity Rules/slab above:

The amount of the gratuity is [(1 0) + (2 0.233) + (2 0.467)]. (Arrear + Basic)