Question: We are showing gratuity in the CTC of employees. Let's suppose an employee leaves the company before 5 years. Do we need to pay them the gratuity amount in F&F, or are we not liable to pay them this amount before 5 years?
From India, Noida
Acknowledge(0)
Amend(0)
1From India, Noida
Acknowledge(0)Amend(0)
Hi, Gratuity should not be deducted from the salaries of the employees. If Gratuity forms part of the Gross salary, then it is considered as part of the employee's salary and should be paid back.
However, I presume your employer is making a premium payment to the insurance company for a Group Gratuity scheme, and the same is reflected in the CTC of the employee. In such cases, there is no need to pay the said amount to the employee before the completion of 5 years. However, if the employee completes 5 years of service, then you are liable to pay Gratuity without fail.
From India, Madras
Acknowledge(0)Amend(0)
However, I presume your employer is making a premium payment to the insurance company for a Group Gratuity scheme, and the same is reflected in the CTC of the employee. In such cases, there is no need to pay the said amount to the employee before the completion of 5 years. However, if the employee completes 5 years of service, then you are liable to pay Gratuity without fail.
From India, Madras
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc