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
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2From India, Faridabad
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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. Maybe he may have to face a hard time to give justifications at different forums for such an unnecessary word. Hence, better to avoid than feel sorry later.
Regards
From India, Chandigarh
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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. Maybe he may have to face a hard time to give justifications at different forums for such an unnecessary word. Hence, better to avoid than feel sorry later.
Regards
From India, Chandigarh
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If it is part of the CTC and clearly not mentioned in the appointment letter or in the terms and conditions of employment, then yes, it's payable, even though you haven't completed 4 years and 240 days.
Regards, V K SHARMA
From India, Delhi
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Regards, V K SHARMA
From India, Delhi
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When you look at CTC, the details of the salary breakdown become part of the employee benefits. Therefore, it is a liability for the employer to pay the employee benefits included in the CTC. No employee would want to give up their rights guaranteed at the time of hiring and the entitlement to avail complete facilities that were offered.
Dear seniors, please correct me if I am mistaken.
Regards,
Anand
From India, Bangalore
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Dear seniors, please correct me if I am mistaken.
Regards,
Anand
From India, Bangalore
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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
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From India, Ghaziabad
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Gratuity is a kind of sweet gesture from the employer's side for long-term service advantage. It can only be paid after the maturity period. The representation from the employer's side is that if you can stay for a long period here, then there would be an additional advantage of gratuity. Finally, the gratuity cost is borne by the employer only, and hence it is an expense towards the employee by the employer. If the monthly salary does not include the gratuity cost, then there is no liability to pay gratuity before the maturity period.
From India, Delhi
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From India, Delhi
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Hi all,
Please be clear - Gratuity is:
1. A service benefit due and payable only on completion of 5 years of continuous service with the same employer.
2. It is not payable monthly as a part of salary, whether one follows CTC or non-CTC pattern.
3. If an employee leaves the employment before completing 5 years of continuous service, he/she has to forfeit the gratuity as it is not encashable like 'unutilized leave at credit.'
Of course, in some cases like PSUs, government/quasi-government services, gratuity 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 on CTC type of service condition.
(I also feel (Government of India), the Gratuity Act should be amended to address concerns regarding CTC type of conditions of service.
From India, Bangalore
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Please be clear - Gratuity is:
1. A service benefit due and payable only on completion of 5 years of continuous service with the same employer.
2. It is not payable monthly as a part of salary, whether one follows CTC or non-CTC pattern.
3. If an employee leaves the employment before completing 5 years of continuous service, he/she has to forfeit the gratuity as it is not encashable like 'unutilized leave at credit.'
Of course, in some cases like PSUs, government/quasi-government services, gratuity 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 on CTC type of service condition.
(I also feel (Government of India), the Gratuity Act should be amended to address concerns regarding CTC type of conditions of service.
From India, Bangalore
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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 is allocated a higher percentage of increase in their salaries.
For an 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
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For an 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
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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 the employee's mind because he will get these statutory benefits whether the employer writes 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 chooses 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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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 the employee's mind because he will get these statutory benefits whether the employer writes 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 chooses 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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