Dear EmployeeX,
Thanks for the detailed post about Gratuity. My organization has completed six years in the current year. From last year, we have started making provisions for Gratuity just because a few employees have completed 5 years in the organization. From the current financial year, we are planning to add the gratuity amount to Employee CTC.
If I go with the formula specified by you, "Gratuity = Current basic X 15 X 5 / 26," then the gratuity component from the total CTC comes to very high, for which employees will not agree at all. If we calculate only for the current year, then the overall liability for the past year needs to be borne by the employer. Is there any suggestion by which we can come out with some fair result that should not hamper the employee as well as the employer?
Thanks
From India, Mumbai
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Thanks for the detailed post about Gratuity. My organization has completed six years in the current year. From last year, we have started making provisions for Gratuity just because a few employees have completed 5 years in the organization. From the current financial year, we are planning to add the gratuity amount to Employee CTC.
If I go with the formula specified by you, "Gratuity = Current basic X 15 X 5 / 26," then the gratuity component from the total CTC comes to very high, for which employees will not agree at all. If we calculate only for the current year, then the overall liability for the past year needs to be borne by the employer. Is there any suggestion by which we can come out with some fair result that should not hamper the employee as well as the employer?
Thanks
From India, Mumbai
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