The premium paid in respect of employees who leaves without qualifying to gratuity will not go to insurance company but it will be adjusted against the insurance premium payable for the next period.
The issue is not with respect to premium but the gratuity portion shown is just a figure for the particular year based on the salary qualifying to gratuity for that year and it dos not consider the length of service.
From India, Kannur
4248The issue is not with respect to premium but the gratuity portion shown is just a figure for the particular year based on the salary qualifying to gratuity for that year and it dos not consider the length of service.
From India, Kannur
I agree sir, But the premium is always less than the 4.8% of your salary. Then why employer cannot put Premium amount instead in CTC or Offer.
From United States, Southfield
From United States, Southfield
Premium amount need not be exactly 4.8 percent of your salary but it is based on certain calculations based on actuarial valuation which is again baaed on various parameters. And that is done once in a year. 4.8 is the 15 days' salary for one year and that is what we put as gratuity in the CTC statements.
From India, Kannur
From India, Kannur
Actually, in my opinion, the exact premium towards gratuity should be shown in CTC which is payable and which is actual.
We are HR, hence, we do put Gratuity in CTC but when you are offered and gratuity affects your CTC then the real question arises that "why gratuity is included in salary".
Anyways, thank you very much for your active participation on this topic.
From United States, Southfield
We are HR, hence, we do put Gratuity in CTC but when you are offered and gratuity affects your CTC then the real question arises that "why gratuity is included in salary".
Anyways, thank you very much for your active participation on this topic.
From United States, Southfield
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.
FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc