Saral Pro

Ex-Gratia in Saral PayPack

Hello Everyone,

In this we will be learning on How to do the Ex-Gratia Process in Saral PayPack.

Let us first understand what Ex-Gratia is?

Ex-gratia refers to a voluntary payment made by an employer to an employee as a goodwill gesture, usually when the employer is not legally obligated to make the payment. It is often provided during festive seasons, as part of employee welfare, or as a recognition of services rendered by employees. This is separate from bonuses, salaries, or other statutory payments. 

To begin with Ex-Gratia is an additional option which we will have to enable based on user requirement, for which navigate to Company Details under Initial Settings and enable Bonus option along with that Ex-gratia  will be enabled under the Pre-Salary Transaction

Click on Add to Add the Ex-gratia name, on adding the new head two sub fields will be auto created which are the Definition and the Calculation field

Next Let us start by Defining the Ex-gratia, Click on Definition to update the same.

 Start by entering the Formula, You can define a formula for Ex-gratia computation or leave it as “None” for manual calculations. Specify the time frame i.e., the From Month and To Month for which Ex-gratia is applicable next, enter the PayMonth for which Ex-gratia amount will be disbursed.

Next, Set the maximum limit for the eligible Ex Gratia amount. Specify the minimum number of working days an employee must complete to be eligible for Ex-gratia

Choose whether Ex-gratia is Dependent or Independent of salary.If dependent, you can include it in Full and Final Settlement (FFS).

Choose the Round off for the payment option Nearest Rupee, Nearest 10 Rupees,Higher Rupee, Higher 10 Rupees, None (keep two decimal points).

Select the mode of Payment(e.g., Bank Advise, Cash, or Paid in Salary)

Determine whether Professional Tax (PT) is applicable on the Ex-gratia amount, if YES enable the option PT On Ex-Gratia and Enable the following option if,

  1. Respective Month – When this option is selected, Ex-gratia will only be calculated for the specified From Month and To Month in the definition
  2. Current Month  – When this option is selected, Ex-gratia will be calculated only the current month the application is in.
  3. Consider previous year – When this option is selected, Then Ex-gratia will be calculated based on the previous financial year
  4. Do Not Consider previous year – when this option is selected, Then ex-gratia will not be calculated based on the previous financial year

Next, Enable the option Calculate on bonus % ,to calculate Ex-gratia as a percentage of the salary amount or to include additional bonuses

At last, Specify the TDS – reference apart from Bonus

On updating all the necessary changes click