Dear Experts,
My company prepaid CTC. and in CTC its deduct Gratuity amount and says its pay after 5 Year.
Kindly advice What Gratuity part of CTC ?
Kindly advice its legal or not.
Regards
Rakesh Kaushik
From India, Alwar
10My company prepaid CTC. and in CTC its deduct Gratuity amount and says its pay after 5 Year.
Kindly advice What Gratuity part of CTC ?
Kindly advice its legal or not.
Regards
Rakesh Kaushik
From India, Alwar
Gratuity can not be a part of CTC.and if in case any employer wants to make it as a part of CTC then that particular employer has to repay the deducted amount even the particular employee is leaving before 4 years 222 days .
Moreover it is a very bad practice if any employer is making the Gratuity as part of CTC.
Regards
Arpit Jain
From India, Delhi
Moreover it is a very bad practice if any employer is making the Gratuity as part of CTC.
Regards
Arpit Jain
From India, Delhi
Dear Rakesh,
Nowadays company consider Gratuity as a part of CTC as it is a fixed liability at companies end.
This topic has been discussed at length in various other threads.
https://www.citehr.com/439970-gratuity-payment.html
https://www.citehr.com/440302-gratuity.html
https://www.citehr.com/435363-payment-gratuity.html
From India, Ahmedabad
Nowadays company consider Gratuity as a part of CTC as it is a fixed liability at companies end.
This topic has been discussed at length in various other threads.
https://www.citehr.com/439970-gratuity-payment.html
https://www.citehr.com/440302-gratuity.html
https://www.citehr.com/435363-payment-gratuity.html
From India, Ahmedabad
Gratuity is an employees cost to the company. To make payment of gratuity to eligible employees, a fund has to be created. There are well defined processes on the management of this fund. There is nothing wrong in employees contributions to this fund (as per a company policy) to be reflected as a part of the CTC.
In this context, a company is free to count any employee benefit schemes as a part of CTC . It is to be noted that there is no definition of the term CTC, it is an internal process for cost analysis. Any employee-related expenditure can be legitimately considered as a part of CTC.
From India, Delhi
In this context, a company is free to count any employee benefit schemes as a part of CTC . It is to be noted that there is no definition of the term CTC, it is an internal process for cost analysis. Any employee-related expenditure can be legitimately considered as a part of CTC.
From India, Delhi
Dear Rakesh and Arpit
CTC is all the cost that a compnay bears for an employees which may include - Basic pay, DA, all allowances, perks, retiral benifits (PF+Gratuity etc.), Insurance, clothing, Piad vacations etc.. Now the components may vary for company to company.
There is nothing wrong on part of your company to consider gratuity expenses that compnay will bear at the time you will become eligible to withdraw as "Cost to Company".
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
CTC is all the cost that a compnay bears for an employees which may include - Basic pay, DA, all allowances, perks, retiral benifits (PF+Gratuity etc.), Insurance, clothing, Piad vacations etc.. Now the components may vary for company to company.
There is nothing wrong on part of your company to consider gratuity expenses that compnay will bear at the time you will become eligible to withdraw as "Cost to Company".
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
Dear Rakesh,
Gratuity contribution by the employer needs to be reckoned as a component of CTC just like contribution to PF, Medical Insurance, Other welfare measures, etc and it is wrong to say that the same is deducted from payment made. It is only exclusion from monthly / pre-paid payments and therefore, nothing odd in this.
Regards,
S. Dass
From India, Bangalore
Gratuity contribution by the employer needs to be reckoned as a component of CTC just like contribution to PF, Medical Insurance, Other welfare measures, etc and it is wrong to say that the same is deducted from payment made. It is only exclusion from monthly / pre-paid payments and therefore, nothing odd in this.
Regards,
S. Dass
From India, Bangalore
Dear All, I Wish to inform you at all. I am very happy.Because convey to all your Message and Notes very useful to me.Pls continues to help me. ThankYou, Munirathinam.S
From India, Chennai
From India, Chennai
Dear Rakesh,
CTC means Cost to The Company which is a general budgetary forecast of engaging an employee by the company. You must understand that by engaging a person, the company is bound to pay certain benefits besides paying him regularly a part as salary and the entire cost has to be accounted somewhere that is why a new term was coined, i.e., CTC, which includes your gross and net salary and other benefits like mediclaim, Insurance, Gratuity, Superannuation and PF etc.
If the Gratuity is deducted from your gross salary, then it is incorrect since Gratuity is a reward which is given by the company for the long and meritorious service rendered by the employee.
Hope the doubt is cleared on CTC aspects.
From India
CTC means Cost to The Company which is a general budgetary forecast of engaging an employee by the company. You must understand that by engaging a person, the company is bound to pay certain benefits besides paying him regularly a part as salary and the entire cost has to be accounted somewhere that is why a new term was coined, i.e., CTC, which includes your gross and net salary and other benefits like mediclaim, Insurance, Gratuity, Superannuation and PF etc.
If the Gratuity is deducted from your gross salary, then it is incorrect since Gratuity is a reward which is given by the company for the long and meritorious service rendered by the employee.
Hope the doubt is cleared on CTC aspects.
From India
Dear all,
This subject was just recently only discussed, pursue this link to know more.
https://www.citehr.com/441953-what-c...ml#post2007444
Regards,
kumar.s.
From India, Bangalore
This subject was just recently only discussed, pursue this link to know more.
https://www.citehr.com/441953-what-c...ml#post2007444
Regards,
kumar.s.
From India, Bangalore
Dear friends,
please let me know whether gratuity can be considered as a part of ctc in case the employee joins a organization and considering the age of retirement his job length is likely to be less than 5 years.then how the organization will consider payment of gratuity.please help me to understand.
Regards,
amar bir singh
From India, New delhi
please let me know whether gratuity can be considered as a part of ctc in case the employee joins a organization and considering the age of retirement his job length is likely to be less than 5 years.then how the organization will consider payment of gratuity.please help me to understand.
Regards,
amar bir singh
From India, New delhi
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REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
Security Amount Proof.docx