I have one confusion regarding the deduction of a 1-month notice period in Full & Final Settlement. As per the company's salary structure, we have included Bonus & LTA Amount in CTC. Now, my question is, when an employee has left the organization without serving the 1-month notice period, should we deduct the 1-month notice period from their Gross Salary?
I would like to know if we can recover 1-month Bonus & LTA during this notice period. The basic concept is: Can we deduct the 1-month notice period from CTC? Can we deduct 1-month CTC amount instead of 1-month Gross Amount?
From India, Mumbai
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I would like to know if we can recover 1-month Bonus & LTA during this notice period. The basic concept is: Can we deduct the 1-month notice period from CTC? Can we deduct 1-month CTC amount instead of 1-month Gross Amount?
From India, Mumbai
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Ref the appointment letter issued. Normally, it is on basic. some companies stipulate as gross salary. Pon
From India, Lucknow
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616From India, Lucknow
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Are you paying bonus and LTA on a monthly basis? If not, how can you deduct it from a month's notice pay?
You seem to be confused between CTC and wages. Wages refer to gross wages/salary. Your notice pay will be computed based on gross wages only. It does not matter what your CTC is. CTC represents costs that are not actually incurred until they are paid.
From India, Mumbai
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You seem to be confused between CTC and wages. Wages refer to gross wages/salary. Your notice pay will be computed based on gross wages only. It does not matter what your CTC is. CTC represents costs that are not actually incurred until they are paid.
From India, Mumbai
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Like Saswata & Pon mentioned, it's on the Gross salary. Many companies, especially in IT, even include the variable part of the salary (that's never usually paid in full at the end of the year) in CTC. This is what you mentioned as a bonus. Where's the guarantee that your company WILL pay the bonus? After all, it depends on a whole lot of factors, many that are not in the company's control.
Origin of the Query
First of all, can you please explain the origin of this query? Why did you get this doubt? Is there any management suggestion to do so?
Regards,
TS
From India, Hyderabad
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Origin of the Query
First of all, can you please explain the origin of this query? Why did you get this doubt? Is there any management suggestion to do so?
Regards,
TS
From India, Hyderabad
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