Dear Professional Colleagues,
I need clarification and guidance on the following point:
Is their any instance in industry circles that Gratuity payable under Payment of Gratuity Act,1972 has been paid along with monthly salary to employees to absolve the Gratuity liability by Employer. Bonus in some industries paid as monthly salary/wage component. Like wise Gratuity can also be paid is my question.
It is very well known that Gratuity becomes part of CTC in most of the Companies, but can it be paid alongwith monthly salary of the Employee
From India, Bangalore
1I need clarification and guidance on the following point:
Is their any instance in industry circles that Gratuity payable under Payment of Gratuity Act,1972 has been paid along with monthly salary to employees to absolve the Gratuity liability by Employer. Bonus in some industries paid as monthly salary/wage component. Like wise Gratuity can also be paid is my question.
It is very well known that Gratuity becomes part of CTC in most of the Companies, but can it be paid alongwith monthly salary of the Employee
From India, Bangalore
Gratuity is a terminal benefit and can not be paid along with monthly salary. Payable after the continuous service of 5 years, and is exempted under Tax law.
Similarly Bonus under Payment of Bonus Act( Profit sharing) can be paid only when the establishment earns profit for the accounting year, paid annual. However if any other Bonus in lieu of profit sharing bonus, is paid then the same can be paid along with monthly salary. Gratuity cannot become a part of Cost to the Company. It can form a part of CTC only after 5 years of continuous service.
From India, Madras
Similarly Bonus under Payment of Bonus Act( Profit sharing) can be paid only when the establishment earns profit for the accounting year, paid annual. However if any other Bonus in lieu of profit sharing bonus, is paid then the same can be paid along with monthly salary. Gratuity cannot become a part of Cost to the Company. It can form a part of CTC only after 5 years of continuous service.
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc