Answer is "Yes" if he completes his gratuity eligibility period before leaving the job; otherwise, he will not be able to receive gratuity.
Read this: <a href="https://www.sabkuchonline.in/2018/02/know-all-about-gratuity-hindi-gratuity.html">What is Gratuity Eligibility and other rules?</a>
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From India, Delhi
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Read this: <a href="https://www.sabkuchonline.in/2018/02/know-all-about-gratuity-hindi-gratuity.html">What is Gratuity Eligibility and other rules?</a>
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From India, Delhi
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Inclusion of Gratuity amount in CTC to an employee's salary is not correct as per my knowledge. Please note that the payment of gratuity is an additional expenditure to the employer as a part of social security benefits to employees. However, the employer has to keep a provision towards the payment of gratuity for completing continuous service rendered by an employee.
If an employee dies while working, the completion of five years will not come into the picture, and the payment has to be made to the nominee as per provision. To make a more attractive package to employees, we (HR) will create/add this amount in CTC, which is a bad practice. Someone has suggested covering this risk under LIC as the best option.
From India, Bengaluru
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1If an employee dies while working, the completion of five years will not come into the picture, and the payment has to be made to the nominee as per provision. To make a more attractive package to employees, we (HR) will create/add this amount in CTC, which is a bad practice. Someone has suggested covering this risk under LIC as the best option.
From India, Bengaluru
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Every penny spent on an employee is accounted for in CTC. Gratuity is also a part of CTC. As Sogemar mentioned, a trust is formed for gratuity with a bank, and the gratuity share of the employee is deposited. Once the employee completes 5 years or 4 years and 240 days, whichever is earlier in case an employee resigns, gratuity will be paid on the last drawn basic @4.81% along with full and final settlement. If gratuity is a part of CTC and an employee leaves within 4 years, the company is not liable to pay gratuity.
Regards, Shweta Gehlot
From India, Delhi
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Regards, Shweta Gehlot
From India, Delhi
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There are a few spelling and grammar errors in the user's input. Here is the corrected version with proper paragraph formatting:
"Nothing is wrong in making gratuity a part of CTC to my knowledge, and there is no need to blame HR. What is CTC? It states the total expenditure for an organization on an employee, which includes all statutory and non-statutory benefits that are payable to him. Benefits like LTA will be paid on termination or resignation as part of the settlement, while benefits like gratuity are subject to statutory provisions. It is essential for both sides to understand an employee's cost to the organization."
Please let me know if you need further assistance or have any more text to review.
From India, Hyderabad
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"Nothing is wrong in making gratuity a part of CTC to my knowledge, and there is no need to blame HR. What is CTC? It states the total expenditure for an organization on an employee, which includes all statutory and non-statutory benefits that are payable to him. Benefits like LTA will be paid on termination or resignation as part of the settlement, while benefits like gratuity are subject to statutory provisions. It is essential for both sides to understand an employee's cost to the organization."
Please let me know if you need further assistance or have any more text to review.
From India, Hyderabad
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yes you are eligible for gratuity if your grauity a part of ctc
From India, undefined
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From India, undefined
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Dear All,
If any component in the salary is a part of CTC, then it should be payable to employees at the time ending FY or exit of employees. There is no clause to retain this amount even if statutory conditions are not fulfilled, but mostly the company agrees to pay.
Regards,
Dhananjoy
From India, Faridabad
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If any component in the salary is a part of CTC, then it should be payable to employees at the time ending FY or exit of employees. There is no clause to retain this amount even if statutory conditions are not fulfilled, but mostly the company agrees to pay.
Regards,
Dhananjoy
From India, Faridabad
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Applicability of Gratuity as per the Payment of Gratuity Act is mandatory for every employer to pay leaving employees who have completed five years of service. Whether Gratuity is included in CTC or excluded does not matter. The earned leave balance of an employee shall be considered to complete five years of service. Employers can hold Gratuity payment in certain cases. If an employee is dismissed due to misconduct as per the law.
From India, Satara
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From India, Satara
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Gratuity is payable on completion of 5 continuous years of service. Inclusion in CTC does not mean that you will get gratuity without completing a minimum period as stipulated by law.
From India, Bhalta
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From India, Bhalta
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Gratuity is payable on completion of 5 continuous years of service. Inclusion in CTC does not mean that you will get gratuity without completing the minimum period as stipulated by law.
Calculation: Basic Salary * 15/26 * more than 4 years (240 Working Days). He/she will be applicable for the Gratuity.
From India, Bangalore
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Calculation: Basic Salary * 15/26 * more than 4 years (240 Working Days). He/she will be applicable for the Gratuity.
From India, Bangalore
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I think employers are using CTC just to make it attractive to their prospective employees. They need not mention CTC because when they do so as an annual package without specifying any other conditions such as per Payment of Gratuity Act, etc., they bind themselves in a specific contract with such an employee who may always want to get their package as per the terms of their employment conditions, and the employer may not be in a position to wriggle out of this contract even when the employee may not have completed the requisite statutory period as enumerated in the PGA. Who knows, the Controlling Authority under the PGA may view the matter eye to eye with the applicant.
I suggest that employers should refrain from writing CTC and should clearly specify in the appointment letter to their employees the amount of salary/wages they would be paid + the statutory benefits like PF, ESI, Bonus, Gratuity, etc. Even if the employer does not mention CTC, the employee understands it and gets it in accordance with the applicable law.
Give it a thought.
Best wishes and regards
From India, Chandigarh
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I suggest that employers should refrain from writing CTC and should clearly specify in the appointment letter to their employees the amount of salary/wages they would be paid + the statutory benefits like PF, ESI, Bonus, Gratuity, etc. Even if the employer does not mention CTC, the employee understands it and gets it in accordance with the applicable law.
Give it a thought.
Best wishes and regards
From India, Chandigarh
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc