Payroll
Note on Gratuity
Calculation of Gratuity for the Employees Who Are Not Covered under the Gratuity Act Even if the organisation is not part of the Act, they can pay gratuity. However, the calculation of gratuity is based on an individual’s half month’s salary for ...
How many days will it take for the employer to remit the gratuity amount?
Usually, gratuity is released along with or just before/after your full and final settlement is done. The government mandates employers to pay the amount within 30 days. If there is any delay in payment, the employer has to pay simple interest on the ...
How do I nominate someone to receive my gratuity in case of my death?
To nominate one or more heirs for your gratuity amount, you need to fill in Form F when joining a company.
Is there a cap to the amount I can receive as gratuity?
Yes. A company cannot pay you more than Rs.10 lakh as gratuity, irrespective of the number of years you have completed. This limit is also applicable to gratuity you can receive from different employers during your lifetime. If your company wishes to ...
Is there any difference in calculation of gratuity for employees who are not covered under the Gratuity Act?
Even if you are not covered by the Gratuity Act, your employer may pay you gratuity. The calculation for this is: Gratuity = Average salary (basic + DA) * ½ * Number of service years. In this case, the service years are not rounded off to the next ...
What kind of employees does the Gratuity Act, 1972 cover?
Payment of Gratuity Act, 1972, applies to employees of factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments related to them. All kinds of government jobs have also been included under the purview of this ...
I am a contract employee in a company. Will I get gratuity if I resign or retire after 5 years?
If you are on the company rolls and are considered an employee of the company, then you will receive gratuity. However, if you are under a contract that is separate from the company then the gratuity should come from the contractor and not the ...
If I resign from a company after 4.5 years of service, am I eligible for gratuity?
No, you have to serve at least 5 years in a company to get gratuity payment. A Madras High Court ruling held that you can avail gratuity if you have completed 240 days of service in the fifth year. It is best to check with the HR of your company ...
On what factors are used to calculate gratuity?
Gratuity is calculated on the basis of last drawn salary and years of service.
How much gratuity is tax exempt?
The maximum gratuity amount that is tax exempt is applicable to a person's entire career. What this means is that during your entire working life, the tax-exempted gratuity amount you can claim cannot exceed Rs 20 lakh currently in total from one or ...
While calculating gratuity, what is considered as salary?
To calculate the gratuity amount you are eligible to receive, the last drawn salary will be considered. The last drawn salary includes basic salary, dearness allowance, commission received on sales.
When is an individual eligible to receive gratuity?
An individual is eligible to receive the gratuity once he/she has completed five years of service with an employer.
How to view the payslips of my employees
Step 1 Login into the Finjinn App Step 2 Go to the Home page Step 3 Click on Team Step 4 Click on Team Step 5 Select the employee Step 6 Click on Payroll Step 7 Scroll down Step 8 Click on “View Payslip” Step 9 You can view ...
How many times can payroll be run?
There is no need to rerun the payroll. Each time an update is made, the system automatically updates the payroll. Changes can be incorporated till the salary is credited to the employees. Once salary is credited, no changes can be done.
What are the activities to be completed before Payroll Run date?
Need to ensure the following is completed 1. Add hires 2. Record separations 3. Manage Hikes(increments) 4. Update one-time payments under Variable Pay 5. Remind Employees on Pan Update Bank Account.
Can I edit the Salary Structure available in Finjinn?
We have pre-configured the most optimal, easy to comply & Tax friendly Salary Structure keeping in mind the needs of both you and your employees’, hence you will not be able to edit the Salary Structure.
Can I run payroll for different locations?
Finjinn app is designed for a Company which has its presence in a single city. You cannot have location wise payroll process.
Can we stop/exclude employees from payroll run?
In Finjinn, payroll is processed for all employees, therefore, payroll cannot be stopped or excluded for select employee(s).
Can I change the payrun date?
Yes you can change the paydate. You have 7 pre-defined pay dates to choose from. The dates are defined considering the statutory payment dates. Any change in the date should be done before the payment is initiated. Once payment is initiated, you ...
Can I have multiple payout days?
You can have only one pay out day in a month and this will be the date you have opted as your payout date.
Can I change the salary payout date any time?
Yes, you can change the payout date any time before releasing the salary.
How to set your payroll on auto-pilot
In first of its kind, you can now set your payroll on auto-pilot in Finjinn and focus on your core business. Step 1 On the Home Page, click the hamburger menu (3 horizontal lines on the top left-hand corner). Click on "Settings". Step 2 Click on ...