NEC - Commercial - Gratuities

According to Section 31 of the NEC for the Commercial  Sectors of Zimbabwe regulations employees, who have completed ten (10) or more years of continuous service, are entitled to receive a once off payment of gratuity if they, leave the employ of the organization, or die. This amount may be reduced if the employer has been contributing amounts, over and above the contributions of the employee to a pension scheme.

The amount of the gratuity is calculated by multiplying the percentage, given in the table below, by the number of completed years of continuous service.

The percentages to be applied are as follows:
Years Service Percentage
5         5
6         6
7         9
8       11
9       13
10     15
11     16
12     17
13     18
14     19
15     20
16     21
17     22
18     23
19     24
20     25
21     26
22     27
23     28
24     29
25     30
26     31
27     32
28     33
29     34
30     35
31     36
32     37
33     38
34     39
35     40

Additional links:

For notes on how to setup an Gratuity Transaction Code go to this link, notice 'Earnings - Gratuity' as one of the Transaction Categories available.

For notes on how to process the Gratuity amount onto each employee's payslip see this link.

To see an example report on Gratuities see this link.