Creating pay codes for gratuity payout

For an organization where the default country is India, a pay code must be created for gratuity payout.

  1. Select Payroll > Administration.
  2. Click the Setup tab.
  3. In the Structure pane, click Pay.
  4. Click the Pay Codes tab, then click Create.
  5. Specify this information:
    Effective Date
    Specify the date on which the pay code is effective.
    Pay Code
    Specify the name of the Pay Code, for example, GRATUITY. Optionally, specify a description.
    Active
    Select to make this pay code active. Clear to inactivate it.
    Pay Summary Group
    Select the pay summary group.
    Calculation Type
    Select Calculate Gratuity.
  6. Click Save.