Dear Paresh M. Vyas,
Gratuity is not a part of CTC and is not included in the CTC breakup. If an employee has completed five years or not, gratuity is not calculated in the CTC.
With warm regards,
Paresh M. Vyas
Advocate & Labour Laws Consultant (M)
Email: pareshvyas04@yahoo.co.in
From India, Mumbai
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3Gratuity is not a part of CTC and is not included in the CTC breakup. If an employee has completed five years or not, gratuity is not calculated in the CTC.
With warm regards,
Paresh M. Vyas
Advocate & Labour Laws Consultant (M)
Email: pareshvyas04@yahoo.co.in
From India, Mumbai
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Dear,
As far as my knowledge is concerned, Gratuity is completely the employer's contribution. The employer can mention the gratuity contribution in the Appointment Letter, provided it is stated in the appointment letter that the employer would be contributing to the gratuity part, and the employee can claim his gratuity after completion of 5 years only.
In case an employee resigns before 5 years, the employee is not supposed to claim his gratuity amount (as mentioned in the Appointment letter - Gratuity is contributed by the employer). If an employee's tenure is closed with the organization before 5 years due to termination, then the employee can claim his gratuity amount.
For details, please go through the attachments.
Note: Always avoid mentioning gratuity contribution in any correspondence that needs to be handed over to the employee, e.g., salary slip, etc.
Thanks & Best Regards,
Prem Singh Rawat
The Department of Human Resources
From India, Delhi
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As far as my knowledge is concerned, Gratuity is completely the employer's contribution. The employer can mention the gratuity contribution in the Appointment Letter, provided it is stated in the appointment letter that the employer would be contributing to the gratuity part, and the employee can claim his gratuity after completion of 5 years only.
In case an employee resigns before 5 years, the employee is not supposed to claim his gratuity amount (as mentioned in the Appointment letter - Gratuity is contributed by the employer). If an employee's tenure is closed with the organization before 5 years due to termination, then the employee can claim his gratuity amount.
For details, please go through the attachments.
Note: Always avoid mentioning gratuity contribution in any correspondence that needs to be handed over to the employee, e.g., salary slip, etc.
Thanks & Best Regards,
Prem Singh Rawat
The Department of Human Resources
From India, Delhi
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Hi,
Since CTC means Cost to the Company, all expenditure made from the company's coffers with respect to the employee (and which will not be spent if the employee does not exist) needs to be taken into account. We must remember that we are not talking about salary or remuneration.
Regards,
N. Balan
RVMN Associates
CSG Group
From India, Bangalore
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Since CTC means Cost to the Company, all expenditure made from the company's coffers with respect to the employee (and which will not be spent if the employee does not exist) needs to be taken into account. We must remember that we are not talking about salary or remuneration.
Regards,
N. Balan
RVMN Associates
CSG Group
From India, Bangalore
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who is the controlling authority of the gratuity.who will pay gratuity amount is it employer or government controlling authority?
From India, New Delhi
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From India, New Delhi
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Hi,
I want to know if an employee has completed his six years, will he get gratuity only for 5 years or for 6 years. If a terminated employee has completed his 5 years in the organization, is he eligible for gratuity? Does gratuity calculation become only for 5 years and not more than 5 years if an employee has completed 7 years or 8 years?
Thank you.
From India, Mumbai
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I want to know if an employee has completed his six years, will he get gratuity only for 5 years or for 6 years. If a terminated employee has completed his 5 years in the organization, is he eligible for gratuity? Does gratuity calculation become only for 5 years and not more than 5 years if an employee has completed 7 years or 8 years?
Thank you.
From India, Mumbai
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For non-government employees (private company employees) who are not covered under the Gratuity Act, the formula below is followed for calculating the Gratuity: Gratuity = Average Salary x 1/2 x Number of years of service. "Average" means 10 months of salary (Basic + DA + Commission) preceding the month of retirement/resignation.
In the above calculation, "not covered under the Gratuity Act" refers to which category of companies? Generally, more than 10 employees are applicable, and we are using the formula: Basic x 15/26 days x years of service. This is where the above will work out. Can anyone please explain? Moreover, explain the new 20 lakh slab formula amendment.
From India , Mumbai
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In the above calculation, "not covered under the Gratuity Act" refers to which category of companies? Generally, more than 10 employees are applicable, and we are using the formula: Basic x 15/26 days x years of service. This is where the above will work out. Can anyone please explain? Moreover, explain the new 20 lakh slab formula amendment.
From India , Mumbai
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