It’s actually not a happy moment for an organization when its employee instigates a suit against an employer whom he has spent his agile and youthful years working for because of either delay in remittance or an error in calculations of his gratuity entitlements. This is how important gratuity entitlement is to both the organization and the employee.

Gratuity payment is a monetary benefit that an employer pays to an employee in gratitude for the services offered by the employee in the organization either by law or otherwise. Naturally, gratuity becomes payable only after an employee has spent a certain number of years with the company. The money is paid by the employer either at the time of an employee retirement or resignation.

Employee gratuity distribution can involve a huge amount annually. Even a 1% error is susceptible to significant overpayments or underpayments. As such, tedious and time consuming manual processes remain unreliable.

Most organizations rely on spreadsheet for its computations but according to a research by PricewaterhouseCoopers , more than 90% of spreadsheets contain serious errors.

Using a system designed for gratuity calculations, like PayDayNG can save your company from financial loss.  PayDayNG can automate gratuity allocation and enhance financial control for your company, while making gratuity distribution and adjustments through payroll faster, easier and with unprecedented precision.

A screenshot of the Gratuity module of the PayDayNG dashboard:


With PayDayNG, you can set up:

  • Gratuity Policy
  • Gratuity Employee Information
  • Multiple Nominee Information
  • Monthly Gratuity Calculation
  • Gratuity Settlement Schedule.
  • Gratuity settlement of an employee can be determined from the onset without stress.

PayDayNG documents the gratuity rules and percentages in the system to bring transparency to the process and strengthen employee trust. You can generate reports automatically to track all relevant information.

For more information on how we can automate your gratuity calculation using PayDayNG Payroll software, connect with our support centre on 01-4542116 or 08173943723.