How is gratuity calculated in Zoho Payroll?

There are two ways in which you can update your employees’ salary.

Understanding how gratuity is calculated is crucial for employees on Limited Contracts. This guide simplifies the process for non-GCC workers, outlining specific conditions for gratuity accrual based on service duration and separation type, whether through resignation or termination.

Resignation at the End of Contract Period

Type of Contract: Limited Contract Period of Service: Less than one year: No gratuity One to less than 5 years: No gratuity Year 5 and above: Full accrued amount Separation Type: Resignation Number of Days Used to Calculate Gratuity: Less than one year: No gratuity One to less than 5 years: No gratuity Year 5 and above: Full accrued amount

Termination:

Type of Contract: Limited Contract Period of Service: Less than one year: No gratuity One to less than 5 years: 21 days per year Year 5 and above: 30 days per year Separation Type: Termination Number of Days Used to Calculate Gratuity: No gratuity for less than one year 21 days per year for one to less than 5 years 30 days per year for year 5 and above