Hi Seniors,
My management made gratuity as a part of CTC. Is it possible to do like that. As per my understanding, gratuity is some thing extra to be given by the management as a gratitude for continuous service in any organisation.
Looking ahead for all seniors kind reply.
Best Regards,
Chaithanya
From India, Bangalore
My management made gratuity as a part of CTC. Is it possible to do like that. As per my understanding, gratuity is some thing extra to be given by the management as a gratitude for continuous service in any organisation.
Looking ahead for all seniors kind reply.
Best Regards,
Chaithanya
From India, Bangalore
Good topic...I also got confusion in this subject.
Taking gratuity for CTC will not give actual cost report. Because gratuity elibility comes only after finishing 5 years of continuous service. If we show this cost in monthly/anuual report for the present rate, we may not be giving same rate when they leave. Complete mismatch. I still do not understand how they made it.
Theoritically its right that company is giving it as gratitude. Since it is not given in words and it is given in money, it costs to company. But company can not calculate this for salary offer/ Package.
From United Arab Emirates, Sharjah
Taking gratuity for CTC will not give actual cost report. Because gratuity elibility comes only after finishing 5 years of continuous service. If we show this cost in monthly/anuual report for the present rate, we may not be giving same rate when they leave. Complete mismatch. I still do not understand how they made it.
Theoritically its right that company is giving it as gratitude. Since it is not given in words and it is given in money, it costs to company. But company can not calculate this for salary offer/ Package.
From United Arab Emirates, Sharjah
This is a highly debatable topic and often found to be not concluded upon.
Gratuity is committed by the employer , to be paid to the employee, when he/she decides to leave the company after a minimum of 5 years of continuous service. Certain companies prepares a list of existing employee, eligible for gratuity and make provision for an equal sum for future disbursement (if scenario arises). They set aside the Gratuity Provision Amount as a separate fund and is utilized only when required to be paid.
Gratuity when shown as a part of CTC (as annual or monthly emolument) it should be necessarily be starred (*) and note to be given in the last. For Example : *Gratuity will be given only after the completion of minimum 5 years of continuous services and as per the provision of Payment of Gratuity Act, 1972
We all agree it is indeed a cost to the company, but rather than taking it as a facility to the employee, employers tend to include that as a component in CTC and blow up / increase the CTC Amount (which will give them slighter advantage / attractiveness for the salary offered)
To conclude, there nothing like a standard / legal format of CTC (as my understanding goes), its just a indication of the employer on what they are going to offer to a prospective employee. It is for a applicant/aspirant to be extra careful , read on the CTC Breakup and accept the offer.
Would be happy to see more contributions to this thread.
From India, Mumbai
34Gratuity is committed by the employer , to be paid to the employee, when he/she decides to leave the company after a minimum of 5 years of continuous service. Certain companies prepares a list of existing employee, eligible for gratuity and make provision for an equal sum for future disbursement (if scenario arises). They set aside the Gratuity Provision Amount as a separate fund and is utilized only when required to be paid.
Gratuity when shown as a part of CTC (as annual or monthly emolument) it should be necessarily be starred (*) and note to be given in the last. For Example : *Gratuity will be given only after the completion of minimum 5 years of continuous services and as per the provision of Payment of Gratuity Act, 1972
We all agree it is indeed a cost to the company, but rather than taking it as a facility to the employee, employers tend to include that as a component in CTC and blow up / increase the CTC Amount (which will give them slighter advantage / attractiveness for the salary offered)
To conclude, there nothing like a standard / legal format of CTC (as my understanding goes), its just a indication of the employer on what they are going to offer to a prospective employee. It is for a applicant/aspirant to be extra careful , read on the CTC Breakup and accept the offer.
Would be happy to see more contributions to this thread.
From India, Mumbai
A tip (also called a gratuity) is an extra payment made to certain service sector workers in addition to the advertised price of the transaction.
Such payments and their size are a matter of social custom. Tipping varies among cultures and by service industry.
orlando inn
From India, New Delhi
Such payments and their size are a matter of social custom. Tipping varies among cultures and by service industry.
orlando inn
From India, New Delhi
Dear All I want to know that what is the calculation of gratuity & who is entitle for gratuity. with regards Anil Asiwal Cont. No. 08445550248
From India, Meerut
From India, Meerut
Hi Anil Asiwal,
Answer for your quarry is as below:
Eligibility: 4 years and 240 days
Amount: For each year of service completed, the employee earns 4.81% of his annual basic + DA salary, based on the last drawn salary, subject to a maximum limit as per the statute (currently it is Rs. 10 Lakhs).
Regards,
Chaithanya
From India, Bangalore
Answer for your quarry is as below:
Eligibility: 4 years and 240 days
Amount: For each year of service completed, the employee earns 4.81% of his annual basic + DA salary, based on the last drawn salary, subject to a maximum limit as per the statute (currently it is Rs. 10 Lakhs).
Regards,
Chaithanya
From India, Bangalore
The Union Cabinet on Thursday decided to raise the ceiling of gratuity payable to employees in the private sector from Rs. 3.5 lakh to Rs. 10 lakh.
The proposal was cleared at the Cabinet meeting presided by Prime Minister Manmohan Singh. With this decision, private sector employees have been brought on a par with the Central government employees who were granted hike by the Sixth Pay commission. The Centre is likely to table a bill amending the gratuity law during the current Budget session of Parliament.
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From India, New Delhi
The proposal was cleared at the Cabinet meeting presided by Prime Minister Manmohan Singh. With this decision, private sector employees have been brought on a par with the Central government employees who were granted hike by the Sixth Pay commission. The Centre is likely to table a bill amending the gratuity law during the current Budget session of Parliament.
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From India, New Delhi
Dear All,
Employers for their own benefit try to make gratuity as a part of CTC, but as per Gratuity Act it is to be paid by employer as a part of employee's long tenure with the organization.
Regards,
Deepak
From India, Vadodara
Employers for their own benefit try to make gratuity as a part of CTC, but as per Gratuity Act it is to be paid by employer as a part of employee's long tenure with the organization.
Regards,
Deepak
From India, Vadodara
If a employee having 3.5years of experience and he is going to retire without completing 5years, then the employer is showing the same in his ctc and not paying him the amount upon his retirement/forced resignation. Then the employee having right to raise his voice legally. Then he can approch and send a lawyer notice to the company. Please advice.
From India, Gurgaon
From India, Gurgaon
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