diff --git a/erpnext/payroll/doctype/gratuity/gratuity.py b/erpnext/payroll/doctype/gratuity/gratuity.py
index 0693583..db353e9 100644
--- a/erpnext/payroll/doctype/gratuity/gratuity.py
+++ b/erpnext/payroll/doctype/gratuity/gratuity.py
@@ -14,11 +14,8 @@
 		data = calculate_work_experience_and_amount(self.employee, self.gratuity_rule)
 		self.current_work_experience = data["current_work_experience"]
 		self.amount = data["amount"]
-
-	def before_submit(self):
-		self.status = "Unpaid"
-		if self.pay_via_salary_slip:
-			self.status = "Paid"
+		if self.docstatus == 1:
+			self.status = "Unpaid"
 
 	def on_submit(self):
 		self.create_additional_salary()
diff --git a/erpnext/payroll/doctype/salary_slip/salary_slip.py b/erpnext/payroll/doctype/salary_slip/salary_slip.py
index 20365b1..6814726 100644
--- a/erpnext/payroll/doctype/salary_slip/salary_slip.py
+++ b/erpnext/payroll/doctype/salary_slip/salary_slip.py
@@ -74,9 +74,27 @@
 			if (frappe.db.get_single_value("Payroll Settings", "email_salary_slip_to_employee")) and not frappe.flags.via_payroll_entry:
 				self.email_salary_slip()
 
+		self.update_payment_status_for_gratuity()
+
+	def update_payment_status_for_gratuity(self):
+		add_salary = frappe.db.get_all("Additional Salary",
+			filters = {
+				"payroll_date": ("BETWEEN", [self.start_date, self.end_date]),
+				"employee": self.employee,
+				"ref_doctype": "Gratuity",
+				"docstatus": 1,
+			}, fields = ["ref_docname", "name"])[0]
+
+		status = "Paid" if self.docstatus == 1 else "Unpaid"
+
+
+		if add_salary and add_salary.name in [data.additional_salary for data in self.earnings]:
+			frappe.db.set_value("Gratuity", add_salary.ref_docname, "status", status)
+
 	def on_cancel(self):
 		self.set_status()
 		self.update_status()
+		self.update_payment_status_for_gratuity()
 		self.cancel_loan_repayment_entry()
 
 	def on_trash(self):
@@ -566,6 +584,7 @@
 		for d in self.get(key):
 			if d.salary_component == struct_row.salary_component:
 				component_row = d
+
 		if not component_row or (struct_row.get("is_additional_component") and not overwrite):
 			if amount:
 				self.append(key, {