Reading Time: 3 minutes

In an organization, the gratuity has a lot of intricacies with respect to the amount. With so many vital factors such as salary, period of service, etc., to be considered. It is here that the Gratuity Calculator provides an easy and accurate solution.

It is a time and effort saver for an HR professional and the employee alike.

What is Gratuity?

The payment made to an employee upon termination. It is usually paid upon cessation of work by the employee. Either by retirement or resignation, or in some cases. By the death of the employee. Belongs to the Payment of Gratuity Act, 1972. 

Gratuity Calculator: Why Use it?

Calculating gratuity manually can be very challenging. Especially when dealing with the eligibility criteria and formula. A Gratuity calculator, on the other hand, ensures accurate calculations. Such as salary reimbursements or tax estimations. Follows the standardized formula. So, your degree of estimation is accurate and replicates the latest gravity.

Benefits of a Gratuity Calculator

Let’s get on with the discussion of why this tool is becoming a necessity. In today’s work environment:

• Time-saving and no errors in calculations

• Helps one in financial planning for retirement. 

• Helps clarify the policies of the companies.

• Useful to HR professionals while processing full and final settlements.

Working in the HR domain with other areas like employee benefits & payroll management. It can make sure that there is increased efficiency and accuracy in its use.

Gratuity Calculator: A How-to Guide

This tool is as easy as it sounds. Here’s how it works.

• In the first box, enter your last basic salary + DA.

• In the second box, enter the total number of years you worked in the company.

• Finally, hit Calculate and see what your gratuity is estimated to be.

Some calculators also offer the option to customise gratuity payments. 

Eligibility for Gratuity

You are eligible if:

• You are resigning, retiring, and tragically, your family may lay claim after your death.

Some companies also offer gratuity voluntarily even before the completion of five years. So it is good to check your HR policies.

Gratuity to Contract Employees and Private Sector Workers

Many wonder if contract employees and private-sector workers have a claim on gratuity. In a way, yes. And if his tenure with the organization meets the minimum required cutoff period.

As for private-sector employees, the same kind of rule applies. Gratuity remains a right under the Act. To avoid legal ambiguities in the future. A contract of employment and HR policy must clearly set out the gratuity provisions.

Mistakes That Should Be Avoided in the Calculation of Gratuity

Miscalculations usually happen due to inaccuracies in inputs. Also, if you wish to know how many years he/she has worked in the organization. It would be applicable for rounding down to a whole year. Nearest unless there is a company policy on counting in the fraction of a year. Keep abreast of the latest legal amendments. These errors can also be avoided by HR teams. 

Conclusion

A Gratuity Calculator is not just a number-crunching machine. It simplifies the process for greater clarity and compliance with the law requirements. Be it planning your future or ending your current one, this is going to be your go-to resource.

FAQs

1. Is gratuity taxable?

Yes, it is taxable if it exceeds ₹20 lakh during your lifetime. For private sector type employees not covered by the Gratuity Act. 

2. Can I get gratuity if I resign before 5 years?

Generally, no, unless there are specific policies in place at your company. Or you qualify for special cases, such as a disability or death.

3. What happens if the employer doesn’t pay gratuity?

The employee can complain to the Labour Commissioner or reach to the court. The employer is also liable to pay the interest as well hrms software.

 

Reading Time: 4 minutes

If you’re a startup company or one that has existed for years. Then an HR Helpdesk will make your people processes speedier, clearer & more consistent. It takes in such basic systems as leave management systems for integration into the main hub. –

What is an HR Helpdesk?

An HR Helpdesk is a central hub. Through which all employees can communicate their grievances or issues. It will be the base of requesting guidance on all those matters.

It takes away all the scattered communication through emails, calls, and messages. And helps with a single, trackable system. Be it clearing some doubts about a salary slip from the HR Helpdesk. Or help with onboarding paperwork. This point becomes the first to be approached for such help.

The Need for HR Helpdesk

Lack of a point of contact for employees eventually lowers productivity. And raises frustration levels. An HR Helpdesk looks into all these factors. It creates a single portal of communication, making employees know where to ask. And HR knows where to respond.

Key Benefits of HR Helpdesk

• Clear communication

• Faster resolutions for employee queries

• Reduction of unnecessary confusion from centralizing all HR-related concerns

It cuts down the time of delay and confusion as well as increases the response time for basic and complex HR tasks. They will have automatic replies to the commonly asked questions.

And the best part? Everything happens to be recorded. This translates into far greater accountability & better-organized workflows. 

Key Characteristics: Definition of Best Service Helpdesk

A great HR Help Desk is far more than just a ticketing system or even an employee support experience. It should be:

• Efficient for HR
• Internal teams can be assigned, tracked, and closed queries within the system.

• Integrated
• Works very well with your payroll, attendance, and performance systems

• Automated

When all of that comes together, it does not just support your employees. It contributes to the culture of your company.

How It Actually Works

Say an employee wants to find out how he should go about applying for a salary leave of absence. He logs on to the HR Helpdesk, chooses the subject category of “Leave Policies,” and puts in a query. The system immediately refers that query to the correct HR executive. Or else gives an automated response.

It becomes registered, time-stamped, and visible to both parties. Then marked closed once it is resolved. That is all.

Now multiply this scenario hundreds of times across multiple staff members and departments. 

Help Desk or Self-Service Portals?

Most people misinterpret HR Helpdesk for self-service portals. Although both have their place in the system, they do not serve the same purposes. Whereas the self-service portal provides the employee with documents or payslips. An HR Helpdesk is an interactive forum for when a person needs support other than just using a button.

All in all, they form the entire HR support where concerned.

Time and Attendance Management

Time and attendance tracking. By putting time and attendance tracking features within the human resource helpdesk.

This feature provides transparency and accountability for time spent by employees at work. Ensuring higher operational efficiency levels.

Find the Right HR Helpdesk for Your Company

Selecting an appropriate HR Helpdesk system is essential for long-term success. As it is not a generalized solution for all. Every organization has individual requirements and priorities. Some of the considerations include:

• Company size

A very small startup may need just the most basic system. Whereas a large enterprise may need considerably more complex functionality.

• Scalability

Will your helpdesk grow with the changing needs of the organization?

• Integration

It is important to consider the effectiveness of the new HR Helpdesk. Integrating with the already set-up systems (HRMS, payroll, etc.).

• Support and Training

Opt for a platform that has reliable customer support as well as learning resources.

Pointers for choosing the right HR Helpdesk

• Convenience of use

• Integration with the other HR systems

• Scalability, the ability of the platform to grow along with your team

• Strong back-up support features for both HR and employees.

By existing with an appropriate system. Translating into better efficiency and satisfaction for employees.

Conclusion

Experience of the whole employee becomes smoother with the HR Helpdesk. Employees feel heard, supported, and valued. It gives leadership insights into common pain points and service quality.

In addition to this, there is reduced dependency on individuals. Since even if one HR executive is unavailable, the query does not get stuck. 

FAQs

1. What’s in it really for HR Helpdesk? 

 Provides a medium for collecting and answering employee inquiries or grievances. Such as those concerning salaries, leaves, benefits, and workplace policies.

2. Is it only for big organizations?

 No. Little as one can be, an HR Helpdesk will assist small businesses too. In smoothing and professionalizing internal communication. 

3. Can it be automated?

 Yes, it can. Automation can even include chatbot assistance in many systems. Offering automation for standard replies to be automatically routed to departments. 

4. What is the difference between HR Helpdesk and HRMS? 

 HRMS underlies human resource management systems. Colossal data payroll, hiring, and also, performance. Whereas helpdesk helps resolve any issue and correspondence.

Summary

HR Helpdesk is more than a support platform. It changes how your company conducts communication between HR and employees. With features like query tracking, automation, and easy integrations. 

You’re ready for an HR Helpdesk, whether improving internal support. Reducing HR workloads, or just trying to show that you care about your people.

 

Reading Time: 3 minutes

At the end of the year, employees often find themselves with leave. They did not utilize. Or upon leaving any company offer. Thus arises the need for leave encashment. If you are an employee wanting to learn about the entitlements. Or an employer establishing HR policies, understanding leave encashment is essential.

This blog post will provide a brief overview of leave encashment. Its meaning, eligibility, taxation norms, and benefits. We will also unravel some FAQ on leave encashment and the HR management process.

What Is Leave Encashment?

To start, encashment means compensating an employee monetarily. For unused paid leave by the employer. It is a privilege to guarantee that no employee loses worth through earned leave. But it is instead encashed by being paid for such days not availed.

Normally calculated as:

Leave Encashment = (No. of unutilized leave days) × (Basic Salary per day + DA + Other allowances, if applicable)

When Leave Encashment is Paid? 

1. Encashment during the course of employment
2. Encashment after retirement
3. Encashment at resignation or termination
4. Encashment in case of death

In a nutshell, it is a way to provide financial stability in view of the tenure of one’s employment.

Tax Regulations for Leave Encashment in India

Leave encashments are considered taxable. Because it serves differently for people depending on the following – 

Government Sector/Public Sector

Exempt from tax on account of retirement.

Private Sector Employees

Under Section 10(10AA) of the Income Tax Act. Any amount exceeding ₹3,00,000 is taxable under the head of salaries.

While you’re in employment

For all employment types: Taxable.

Therefore, to apply the above computation and administer it properly. Companies generally utilize some kind of HR payroll software. Or integrated employee benefits management systems.

What Is the Leave Encashment Calculation?

Understanding the computation of leave encashments helps employees and HR. Teamwork together in ensuring transparency and proper compensation. However, the general form is this:

Leave Encashment = (No. of unutilized leave days) × (Basic Salary per day + DA + Other allowances, if applicable)

Let’s break this down.

Basic Salary per Day = Monthly Basic Salary ÷ 30 (or the number of working days in the month)

Other Allowances = Sometimes includes HRA or DA, based on company norms

Example:

Monthly Basic Salary: ₹30,000

Unutilized Earned Leave Days: 20

Calculation:

 ₹30,000 ÷ 30 days

Hence, ₹1,000 per day

 ₹1,000 × 20 days

Leave encashment of ₹20,000

Some companies also use gross salary to calculate encashment. Thus, the amount of encashment can rise significantly. It is always better to check your leave policy or consult the HR on how your company treats it.

Leave Encashment Policy – What Does HR Include?

From the HR perspective. The general leave policy of an organisation should be well-defined:

– The types of leave for encashment

– The timing of payments (annually, on exit, etc.)

– The method of calculation (basic or gross salary)

– The ceilings or cap (the maximum number of days permitted for encashment)

Thus, when written accurately, policies increase the transparency of an organisation. While enhancing employee engagement and retention.

Pros of Leave Encashment for Employers and Employees

Leave encashment is also a strategic HR tool that benefits the workforce. And the organisation in many ways.

For Employees:

Financial Aid

Leave encashment grants an extra financial cushion. 

Motivation To Perform

The idea that unused leave can be encashed offers advantages to employees. By making them aware of time management, discouraging them from taking unnecessary leave.

Sense of Recognition and Reward

It appreciates and compensates for employee commitment and attendance. Boosting the overall satisfaction level at work.

For Employers:

Less Unplanned Absenteeism

Employees are more careful in their approach towards leaves.

Retention Booster

A properly framed leave encashment policy wins the employee’s heart. And trust in HRM’s practice.

Streamlines Exit Settlement

It adds efficiency to the final settlement process. Enabling a smoother and more professional transition.

When clarity of implementation prevails

It creates a fair and productive culture in the workplace.

Conclusion

Leave encashment is not merely a financial facility. It is a key differentiator in an employee-friendly and just HR system. With proper framing and execution. This can also prove a strong morale booster. Strengthening faith in the policies of the organization among employees. Between the costs incurred by the business vis-a-vis employee benefits.

FAQs

Q1 – Is encashment of leaves taxable in India? 

Yes, it is. Mostly for the privately working class, it is partially exempted, but within limits. It remains totally exempt for the government workers while they are retiring.

Q2 – If I resign and I still have unused leaves, what will happen? 

Left according to your premises policy and at the current rate.

Q3 – How many leaves can be carried forward for encashment? 

This totally depends on your company’s leave policy.

Summary

It is crucial that companies have leave policies that define the processes in place. Clearly, to ensure transparency and ease in operations within HR departments. This should clearly outline eligibility and calculation methods, and encashment limits. 

Furthermore, by integrating leave management into an expansive HR management system. Organisations can optimise employee satisfaction alongside compliance with labour laws.

 

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In the present day, with a wide range of changes in business ecosystems. It is here that the Talent & acquisition concept comes in-fold. 

Talent & acquisition plan for tomorrow. Doing this quickly and better, many modern organizations are basically digitizing this process. With tech-enabled tools like recruitment software, to can make their hiring journey easy.  

 What Is Talent & Acquisition? 

It means the process of identifying organizational needs. There are certain elements of HRM folded into that that could cover employer branding. Workforce strategy, sourcing, interviewing, and onboarding.

It’s not a one-time process. It should be a continuous cycle where companies nurture their relationships. 

Why Talent & Acquisition is More Vital than Ever

Any company aiming for continued growth. Needs to invest in a commendable Talent & Acquisition structure. Here are the reasons why:

Improves Workforce Quality

A well-made strategy allows only the skilled one. 

Strengthens Company Culture

By aligning candidates with company values. The workplace becomes a more harmonious place. 

Reduces Turnover

Good hires translate to fewer headaches, in turn making the most of time. And resources in the long run.

Drives Long-Term Success

Strategically hiring people keeps companies prepared for ever-changing trends and challenges. 

More and more companies have realized the benefits of using onboarding solutions. With smart integrations, which enhance the new hire experience from day one. And improve retention.

Key success factors of Talent & Acquisition strategy

The key pillars that responsible organisations need to keep building on are basically:

Workforce Planning

This should always begin with future growth, skill gaps, and organizational goals. This hiring would be business needs-driven.

Employer Branding

It comes into a digital presence. The culture of the company, employee testimonials, and so much more matter a lot. 

Sourcing Talent

No longer wait for applicants to walk through your door. Instead, actively search on social media, job portals, and HRMS platforms.

Efficient Interviewing & Selection

Have an intelligent, fair, and equally structured interview process. To evaluate skills, personality and fit towards company culture.

Onboarding & Integration 

Most overlook this, yet it is pivotal. For a new hire, engages, and has made things such as those offered by Savvy HRMS seamless, scalable

Technology and Its Importance in Talent & Acquisition

 It provides a complete recruitment dashboard for businesses, which includes job postings. Applicant tracking and onboarding automation save time as well as resources. 

Beyond that is a data insight and reporting feature to enable HR teams to make informed. Data-driven hiring decisions.

The Future of Talent & Acquisition: What’s Next?

As the business world has evolved, so have the methods behind hiring. Some of the most important trends shaping the future of Talent & Acquisition include:

– Remote & Hybrid Work Models

– Diversity, Equity, & Inclusion (DEI)

– Skill-Based Hiring over Degrees

– AI and Machine Learning in HR

– Candidate Experience as a Priority

Therefore, opportunities must be flexible and adaptive to keep the company ahead. That’s where Savvy HRMS comes in, cloud-based &  mobile-friendly. And easy solutions for recent hiring needs.

Conclusion

It is all about creating an empowered workforce for tomorrow! With appropriate planning, thoughtful connections, and the appropriate tools. Like Savvy HRMS, organizations can attract new talent. The next big step is to invest in a modern and tech-driven talent acquisition strategy. 

FAQs

Q1: How do recruitment and talent acquisition differ? 

Recruitment focuses on filling vacancies in a short time and for a specific role. 

Q2: Can talent acquisition be automated? 

Yes! With the full hiring range-user-friendly HRMS such as Savvy HRMS. That is really going to save a lot of time and enhance productivity! 

Q3: Importance of employer branding in talent acquisition?

Strong employer branding will attract better candidates. And put your company at an advantage in a highly competitive hiring market. 

Q4: Link between onboarding and talent acquisition?

Onboarding is crucial because it connects the new hires. Providing support and preparation to make their contributions to the core hr software.