Hi,
I have been working for a company in the UK for more than 8 years. We also have an office in India that operates as a subsidiary, with the UK company being the parent company.
I am considering moving to India for a 2-year secondment initially and would receive my salary in India through the Indian payroll. Importantly, I will not be resigning from the UK parent company, and there will be no break in my service with the UK company during the secondment.
I have two questions regarding gratuity:
1. If I return to the UK company after completing the 2-year secondment, can the Indian subsidiary still pay me the gratuity amount they would have deducted from my Cost to Company (CTC)?
2. Is it mandatory for the subsidiary in India to deduct gratuity from my salary in India?
Thank you.
From United Kingdom, Milton Keynes
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I have been working for a company in the UK for more than 8 years. We also have an office in India that operates as a subsidiary, with the UK company being the parent company.
I am considering moving to India for a 2-year secondment initially and would receive my salary in India through the Indian payroll. Importantly, I will not be resigning from the UK parent company, and there will be no break in my service with the UK company during the secondment.
I have two questions regarding gratuity:
1. If I return to the UK company after completing the 2-year secondment, can the Indian subsidiary still pay me the gratuity amount they would have deducted from my Cost to Company (CTC)?
2. Is it mandatory for the subsidiary in India to deduct gratuity from my salary in India?
Thank you.
From United Kingdom, Milton Keynes
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Gratuity is paid out of Gratitude for long term service in a company, it can not be deducted from the Salary/CTC.
From India, Ahmadabad
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787From India, Ahmadabad
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Gratuity is payable for working in the same company for a period of 5 years or more without a service break. Therefore, you will never be eligible for the same under Indian laws. You may be eligible under the British laws (which I am not conversant with).
Therefore, your company including it in their CTC is wrong. Tell them to remove it. Gratuity is not a contributory benefit. The company is required to pay it out of its own funds, and therefore, it cannot be deducted from salary (but of course, it can be included in CTC working, which has no statutory recognition).
From India, Mumbai
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Therefore, your company including it in their CTC is wrong. Tell them to remove it. Gratuity is not a contributory benefit. The company is required to pay it out of its own funds, and therefore, it cannot be deducted from salary (but of course, it can be included in CTC working, which has no statutory recognition).
From India, Mumbai
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