Understanding Employee Contribution to Gratuity
Why should an employee contribute to gratuity? Are there exceptions to the rule which allow some companies to deduct 4.81% of the basic salary towards gratuity?
Steps to Take if a Company is Deducting 4.81% Towards Gratuity
What should one do if a company is deducting 4.81% towards gratuity?
From India, Madras
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1Why should an employee contribute to gratuity? Are there exceptions to the rule which allow some companies to deduct 4.81% of the basic salary towards gratuity?
Steps to Take if a Company is Deducting 4.81% Towards Gratuity
What should one do if a company is deducting 4.81% towards gratuity?
From India, Madras
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Is there any change in gratuity act. According to me employee do not contribute to gratuity fund.
From India, Hyderabad
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From India, Hyderabad
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Understanding Gratuity as an Employer's Liability
Legally, gratuity is the employer's liability. The employee has nothing to do with it. Few companies do show gratuity benefits in the offer letter or annual salary break-up, but that does not mean it's the employee's money. That's purely a way of inflating the CTC figures.
You cannot do anything if it is mentioned in the offer letter or annual salary break-up. You can legally sue your company for gratuity benefits if they are mentioning the same in the monthly pay-slips alongside other deductions like income tax, professional tax, and PF deductions.
Regards,
Gaurav
From India, Hyderabad
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Legally, gratuity is the employer's liability. The employee has nothing to do with it. Few companies do show gratuity benefits in the offer letter or annual salary break-up, but that does not mean it's the employee's money. That's purely a way of inflating the CTC figures.
You cannot do anything if it is mentioned in the offer letter or annual salary break-up. You can legally sue your company for gratuity benefits if they are mentioning the same in the monthly pay-slips alongside other deductions like income tax, professional tax, and PF deductions.
Regards,
Gaurav
From India, Hyderabad
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