Gratuity Calculation

[venkateshorusu]

In my scenario employee who has served 18 years for company,   company will pay gratuity for 18 years,gratuity should be calculated based on current month basic/26days*15*no of service period years.?

after the configuration of above mentioned tables G1,G3,G5 and constant values DYSMN, GREYR, GRTYR, GRYCO, GRYTX. how the system will calculate the exact amount and how employee will get payment. I mean to ask that do we need to create a custom wage type.?

[venkateshorusu]

Hi Diwakar,

I am not able to find model wage type MPG0

what could be the reason,i tried to copy this wage type through OH11 and PU30.

Wage type MPG0 belongs to which group.?

Thanks in advance

Venkatesh

[diwakarmaurya]

Hi Venkatesh,

It belongs to WT group 0015, country grouping 40.

Regards

Diwakar

[venkateshorusu]

Hi Diwakar,

1) I checked MPG0 using WT group 0015 and country grouping 40

I could not find this and i configured gratuity when i executed payroll  /3g0,/3g3 and /3g4 wage types only appering /3g2 is not appearing,what could be the reason provide some info..

Thanks in advance

Venkatesh Orusu

[venkateshorusu]

Hi diwakar,

2)As you said i will copy one wage type and maintain 57.69 on basic+dearness allowance

i.e 0.5769*monthly salary,but it should be multiply with no of years service period

how it shold be done please provide solution.

Thanks & Regards

Venkatesh

[venkateshorusu]

Hi Diwakar,

I configured Gratuity and by using termination action i updated wage type to 0015 but exemption wage type is not getting populated what could be the problem

Please suggest me.

Thanks

Venkatesh

[diwakarmaurya]

Hi Venkatesh,

Please go through the documentation of Function INGTX. It will be calculated by the function during payroll run if you have filled the number of years for the gratuity payment wagetype and assigned the Tax code in V_T7INT9. It will not get updated in IT15. Exemption wagetype for Gratuity is /4E8.

Regards

Diwakar

[venkateshorusu]

Hi Diwakar,

I checked function INGTX where my wage type xxxx is coming in input table,output table with exact amount but my concern is /4E8 is not getting generated(for exemption amount)

What could be the reason please suggest me.

Thanks

Venkatesh

[diwakarmaurya]

Hi,

The Gratuity amount is calculated by the Termination Workbench (PC00_M40_TERM).

For this, you will first need to create the custom wagetype by copying from model wagetype MPG0.

Then maintain the wagetype valuation in table V_T539J to be valuated as 57.69 (15/26) of your custom Basic wagetype.

Also, maintain your custom Gratuity wagetype in table V_T7INA9 classifying it as 'Gratuity' in RAP indicator. You should be good to go!

Regards

Diwakar