Dear Sir, Please give me advice about how can count the gratuity per month in CTC. B B Sharma
From India, Ahmedabad
From India, Ahmedabad
18
Yes Correct one is:- =Last Basic Salary*15/26*No. of Years add the amount with CTC Figure.
From India, Nagpur
From India, Nagpur
If you want to add gratuity cost in ctc, you need to 4.8% of salary.
However, this will be incorrect to some extent since gratuity is based on last drawn salary. If the person was to leave now (assuming 5 years completed), he will get as per current salary but the accumulated effect of the ctc of previous years will be lower.
Think on those lines and you will have a more accurate model.
From India, Mumbai
However, this will be incorrect to some extent since gratuity is based on last drawn salary. If the person was to leave now (assuming 5 years completed), he will get as per current salary but the accumulated effect of the ctc of previous years will be lower.
Think on those lines and you will have a more accurate model.
From India, Mumbai
Dear Brahmanand
Gratuity is not part of Gross Salary of employee, but while sharing CTC pattern it is shown as 4.81% of the Basic Salary.
Below CTC structure please mention that * Gratuity as per Act. (This will solve all future issues, in case employee has very high basic and while retirement / separation, actual calculation of gratuity is more than 10 Lakhs then also you can restrict payment to 10 Lakhs, else employee will have dispute with management to have actual calculation which is higher than 10 lakhs, we have seen employees asking as ex-gratia as higher amounts (differential to 10 Lakhs) due to its part of CTC, though act supports only for 10 Lakhs)
HR Department
BrainLight HR Solutions
From India, Mumbai
Gratuity is not part of Gross Salary of employee, but while sharing CTC pattern it is shown as 4.81% of the Basic Salary.
Below CTC structure please mention that * Gratuity as per Act. (This will solve all future issues, in case employee has very high basic and while retirement / separation, actual calculation of gratuity is more than 10 Lakhs then also you can restrict payment to 10 Lakhs, else employee will have dispute with management to have actual calculation which is higher than 10 lakhs, we have seen employees asking as ex-gratia as higher amounts (differential to 10 Lakhs) due to its part of CTC, though act supports only for 10 Lakhs)
HR Department
BrainLight HR Solutions
From India, Mumbai
Hi Friends and seniors,
Greetings
Are we supposed to include Gratuity amount on monthly Basis in Salary/ctc Structure? Does the gratuity act has any mention in this regard.My Second Question is that What about gratuity of workers/Contract workers who work for more than 5 Years with the company/agency but there is no mention of it in their CTC/salary structure?
From India, Vadodara
Greetings
Are we supposed to include Gratuity amount on monthly Basis in Salary/ctc Structure? Does the gratuity act has any mention in this regard.My Second Question is that What about gratuity of workers/Contract workers who work for more than 5 Years with the company/agency but there is no mention of it in their CTC/salary structure?
From India, Vadodara
Dear Bijay,
In the Labour Law CTC is not defined. For our own calculation we all have introduced CTC concept many years ago. (Its not mandatory to show Gratuity amount in CTC, normally it is shown to represent total / overall cost of employee).
Gratuity is applicable for contract workers as well, who are working continuous with same firm/contractor for more than 5 years.
HR Department
BrainLight HR Solutions
From India, Mumbai
In the Labour Law CTC is not defined. For our own calculation we all have introduced CTC concept many years ago. (Its not mandatory to show Gratuity amount in CTC, normally it is shown to represent total / overall cost of employee).
Gratuity is applicable for contract workers as well, who are working continuous with same firm/contractor for more than 5 years.
HR Department
BrainLight HR Solutions
From India, Mumbai
Hi,
BrainLight,
Gratuity is Applicable as per the act. Yet it is not mandatory to Show in CTC as it is For Our Calculation only.What one should do if he has to claim for the same if there is no mention of gratuity entitlement any where in documents.Can the issue be taken up Just by proving that a person has worked for more than the period defined for the entitlement of Gratuity.Does the Terms of services calls for its mention?.is it Mandatory?
Thanks regards
Bijay
From India, Vadodara
BrainLight,
Gratuity is Applicable as per the act. Yet it is not mandatory to Show in CTC as it is For Our Calculation only.What one should do if he has to claim for the same if there is no mention of gratuity entitlement any where in documents.Can the issue be taken up Just by proving that a person has worked for more than the period defined for the entitlement of Gratuity.Does the Terms of services calls for its mention?.is it Mandatory?
Thanks regards
Bijay
From India, Vadodara
Dear Saswata Banerjee,
I appreciate your answer but 4.8% on Basic salary only and not on the total salary. The question is not for settlement of gratuity. The query is for additing into CTC only. In few companies the Gratuity and direct and indirect expenses spent on an employee is shown in CTC, so that the figures will be clear for arriving manpower cost.
From India, Hyderabad
I appreciate your answer but 4.8% on Basic salary only and not on the total salary. The question is not for settlement of gratuity. The query is for additing into CTC only. In few companies the Gratuity and direct and indirect expenses spent on an employee is shown in CTC, so that the figures will be clear for arriving manpower cost.
From India, Hyderabad
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