Creating end of service tiers

In Payroll, end of service tiers enable you to define the end of service benefits (gratuity) you offer to your employees.

The end of service entitlement for each employee depends on factors such as employment contract type, length of service, and more. The calculation also depends on local laws and therefore differs in different countries.

You can create different end of service tiers for your business for different cases.

As a payroll or platform admin, you can create and configure end of service tiers. Do the following:

  1. In the sidebar, in the Business section, click Settings.

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  2. Go to Payroll > End of service.

    This page lists the end of service tiers available for your business.

  3. Click + Add end of service tier.

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  4. Enter the following details:

    1. Enter a Name for the tier.

    2. Select a Contract type from the drop-down menu.

    3. Select the time unit that you want to base your calculations on from the Calculation rate drop-down menu.

    4. Define how to calculate the entitlement amount for different time periods in the Periods section.

      You can enter values in the different columns based on how you want to configure the calculation. To add additional rows, click icon.png in the bottom-right corner.

    5. In Maximum payout, enter the upper limit of the amount paid to employees as their end of service entitlement.

    6. In the Calculate pay on drop-down menu, select the salary component that you want to apply the calculation to.

    See the following example:

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  5. Click Save.

The end of service tier is saved. You can assign it to employees when adding them to the platform or at any other time from their profile.

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