No Employer is not authorised to deduct any amount from employee pay on account of gratuity
From India, Ghaziabad
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280From India, Ghaziabad
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No such provision in the Act. Employers' liability should not be deducted from employees' salary/wages. Furthermore, employers' liabilities such as ESI, PF, Gratuity, etc., are not to be treated as wages. You may refer to the Payment of Wages Act.
From India, Madras
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From India, Madras
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No, an employer can't deduct Gratuity from wages, as it's the total employer's responsibility to pay gratuity at the time of separation after 4 years and 240 days or in case of death at any time during the service period.
According to some friends, it's correct to include it in CTC. They are misleading other members because, for the first year, if an employee's basic is 12,000, then his gratuity contribution becomes 573.00. The following year, if his basic is revised to 13,500, then the gratuity becomes 650.00. This increment continues until the fourth year, possibly reaching 820. Now, if the employee leaves after five years and eight months when his basic is 20,000, his gratuity calculation should be based on 962 on a monthly basis for five years, which translates to 68 months. The total amount would be 68*962=65,416.00, not as per the fixed CTC calculation.
Therefore, it is the HR's duty to guide their employer in the correct direction.
From India, Delhi
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According to some friends, it's correct to include it in CTC. They are misleading other members because, for the first year, if an employee's basic is 12,000, then his gratuity contribution becomes 573.00. The following year, if his basic is revised to 13,500, then the gratuity becomes 650.00. This increment continues until the fourth year, possibly reaching 820. Now, if the employee leaves after five years and eight months when his basic is 20,000, his gratuity calculation should be based on 962 on a monthly basis for five years, which translates to 68 months. The total amount would be 68*962=65,416.00, not as per the fixed CTC calculation.
Therefore, it is the HR's duty to guide their employer in the correct direction.
From India, Delhi
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So don’t put gratuity in CTC it can be calculate after the service separation only.
From India, Delhi
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From India, Delhi
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The calculation as shown above is incorrect. If any employee worked for 5 years 8 months, i.e., 68 months, and his last drawn basic is 20,000/- per month, then his gratuity amount will be (20000/26) * 15 * 6 = 69,231/-.
Secondly, the consideration that has been made, that the money deducted from CTC every month will not be invested properly, is not right. Either the money will be invested in any insurance or managed by the Gratuity trustee formed by the company.
Whether Gratuity should be part of CTC or not is the organization's own policy as there are no legal bindings. If it is not part of CTC, the question does not arise to deduct gratuity from salary - it is illegal. But if it is part of CTC, it has to be managed professionally; otherwise, it will also create a problem.
S K Bandyopadhyay (Howrah, WB)
From India, New Delhi
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Secondly, the consideration that has been made, that the money deducted from CTC every month will not be invested properly, is not right. Either the money will be invested in any insurance or managed by the Gratuity trustee formed by the company.
Whether Gratuity should be part of CTC or not is the organization's own policy as there are no legal bindings. If it is not part of CTC, the question does not arise to deduct gratuity from salary - it is illegal. But if it is part of CTC, it has to be managed professionally; otherwise, it will also create a problem.
S K Bandyopadhyay (Howrah, WB)
From India, New Delhi
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Dear Colleagues,
As I observe, enough has been said on the original query, mostly repeating the same points or digressing without adding much value. It is time we pull the plug on it if no fresh valuable views are forthcoming.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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As I observe, enough has been said on the original query, mostly repeating the same points or digressing without adding much value. It is time we pull the plug on it if no fresh valuable views are forthcoming.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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Pls Refer My OFFER,This legal or illegal Pls find the attached
From India, Coimbatore
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From India, Coimbatore
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Employer is not authorised to deduct any amount from employee pay on account of gratuity. Employer has no right to cut it in his/her salary.
From India, Bhilai
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From India, Bhilai
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Any deduction that is not in line with the Payment of Wages Act is illegal. Furthermore, the employer does not have the legal right to deduct gratuity from their employees. In case there is any agreement to this effect, it will be voidable at the instance of the employee and by Court's order.
If your employer is deducting the gratuity amount every month, please ensure that those deductions are reflected in your pay-slip or obtain receipts. Otherwise, it may be challenging to prove in a Court of law.
From India, Kolkata
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If your employer is deducting the gratuity amount every month, please ensure that those deductions are reflected in your pay-slip or obtain receipts. Otherwise, it may be challenging to prove in a Court of law.
From India, Kolkata
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