Hi If it is part of the CTC, Yes its payable, even though you haven’t completed 4 years and 240 days Thanks SMJ
From India, Faridabad
2From India, Faridabad
Hello everyone.
Indeed, writing the word CTC is unnecessarily giving a handle to the Controlling Authority, Appellate Authority of Higher Courts to construe its meaning against the employer. It really does not bring any benefit to him. May be he may have to face hard time to give justifications at different forums for such an unnecessary word. Hence, better avoid than feel sorry later.
Regards
From India, Chandigarh
Indeed, writing the word CTC is unnecessarily giving a handle to the Controlling Authority, Appellate Authority of Higher Courts to construe its meaning against the employer. It really does not bring any benefit to him. May be he may have to face hard time to give justifications at different forums for such an unnecessary word. Hence, better avoid than feel sorry later.
Regards
From India, Chandigarh
If it is part of the CTC and clearly not mentioned in appointment letter or in terms and conditions of employment, then Yes its payable, even though you haven't completed 4 years and 240 days
Regards,
V K SHARMA
From India, Delhi
Regards,
V K SHARMA
From India, Delhi
When you see at CTC, the particulars of salary shows in the break-up becomes an employee benefits. Therefore, its a liability by an employer to pay the employee benefits which includes in the CTC.
No employee would like to leave his/her liberties assured the time of hire and entitled avail complete facilities were offered.
Dear Seniors, correct me if I am wrong.
Rgds,
Anand
From India, Bangalore
No employee would like to leave his/her liberties assured the time of hire and entitled avail complete facilities were offered.
Dear Seniors, correct me if I am wrong.
Rgds,
Anand
From India, Bangalore
Yes Gratuity will be the part of CTC but payable only on completion of 5 continuous years of service. Thanks & Regards, From, sumit kumar saxena
From India, Ghaziabad
From India, Ghaziabad
Gratuity is a kind of sweets from employer side for long terms services advantage,It can only pay after maturity period.
The representation from employer side is ,if you can stay for a long period here then there would be an additional advantage of gratuity,finally gratuity cost bear by the employer only and hence it is an expenses towards employee by employer.If monthly salary does not includes the gratuity cost then there is no liability to pay gratuity before maturity period.
From India, Delhi
The representation from employer side is ,if you can stay for a long period here then there would be an additional advantage of gratuity,finally gratuity cost bear by the employer only and hence it is an expenses towards employee by employer.If monthly salary does not includes the gratuity cost then there is no liability to pay gratuity before maturity period.
From India, Delhi
Hi all,
Pl.be clear - Gratuity is
1. A Service benefit due & payable only on completion of 5yrs of contiuous service with the very same employer;
2. It's not payable monthly as a part of salary whether one follow CTC or non-CTC pattern;
3. If an employee leaves the employment before completion of 5 yrs continuous service, he/she has to forfeit the gratuity as it is not encashable like 'unutilised leave at credit';
Of course, in some cases like PSUs, govt/quasi govt. services, grauity could be transferred by remittance/transfer of proceeds from the previous employer to the present employer when mutually agreed to such an arrangement;
4. An employer can either follow the Gratuity Act or their own Gratuity Rules modeled on the Gratuity Act (which offers more benefits than the Act). In such cases the gratuity kitty is known to be much more than what's offered under the Act;
5.Gratuity Act does not offer any clarification of CTC type of service condition.
(I also feel (Govt of India), the Gratuity Act should be amended to address concerns
reg.CTC type of conditions of service.
From India, Bangalore
Pl.be clear - Gratuity is
1. A Service benefit due & payable only on completion of 5yrs of contiuous service with the very same employer;
2. It's not payable monthly as a part of salary whether one follow CTC or non-CTC pattern;
3. If an employee leaves the employment before completion of 5 yrs continuous service, he/she has to forfeit the gratuity as it is not encashable like 'unutilised leave at credit';
Of course, in some cases like PSUs, govt/quasi govt. services, grauity could be transferred by remittance/transfer of proceeds from the previous employer to the present employer when mutually agreed to such an arrangement;
4. An employer can either follow the Gratuity Act or their own Gratuity Rules modeled on the Gratuity Act (which offers more benefits than the Act). In such cases the gratuity kitty is known to be much more than what's offered under the Act;
5.Gratuity Act does not offer any clarification of CTC type of service condition.
(I also feel (Govt of India), the Gratuity Act should be amended to address concerns
reg.CTC type of conditions of service.
From India, Bangalore
All statutory and non-statutory variables like Basic, DA, HRA, Allowances, Bonus, EPF (24%), Gratuity, Superannuation etc are all part of CTC. CTC is 'cost to company' and employees' total cost as a percentage of net profit becomes part of an annual budget exercise for professionally managed companies. CTC contains hidden costs and these variables are used to manipulate the figures at the time of annual increment as higher management are allocated a higher percentage of increase in their salaries. For a 8,000 Crores company, a 5% reduction in overall CTC will save Rs. 400 Crores. So this is a strategic human resource activity where CTC numbers are used for downsizing etc.
From India, Mumbai
From India, Mumbai
Sogemar Ji
But this explanation of yours does not answer the query. It seems that the term 'CTC' is relevant only for the employer for his budgeting purposes. In no way it inspires any extra motivation in employee's mind because he will get these statutory benefits whether employer write CTC or not in his appointment letter. Rather, another window of trouble may be opened for the employer in case the employee leaves service before completing the eligibility period of gratuity and choose to claim gratuity as being part of CTC. The 'Controlling Authority' may agree to his claim as this is a more beneficial right made available to him in his Appointment Letter and the same is also in tune with section 4(5) of the Payment of Gratuity Act, 1972.
Best wishes and regards
From India, Chandigarh
But this explanation of yours does not answer the query. It seems that the term 'CTC' is relevant only for the employer for his budgeting purposes. In no way it inspires any extra motivation in employee's mind because he will get these statutory benefits whether employer write CTC or not in his appointment letter. Rather, another window of trouble may be opened for the employer in case the employee leaves service before completing the eligibility period of gratuity and choose to claim gratuity as being part of CTC. The 'Controlling Authority' may agree to his claim as this is a more beneficial right made available to him in his Appointment Letter and the same is also in tune with section 4(5) of the Payment of Gratuity Act, 1972.
Best wishes and regards
From India, Chandigarh
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