From the PAY SLIP you have provided, it is not seen that they have deducted any statutory deduction from your Monthly gross salary which is your real salary to appear on the PAY SLIP. To arrive at the net pay they have deducted only PF contribution (employee's share) from the monthly salary (Monthly Salary Rs. 28519.00 Less PF Rs. 2053.00 Net Pay Rs. 26466.00).
They have provided other benefits on yearly basis like PF, Grtuity. Leave. Bonus and Medical Insurance to arrive at the Cost to Company (CTC).
If during the negotiations if you accepted 4,00,000 as CTC, then the break up seems to be correct except any mathematical mistake.
If you understood Rs. 4,00,000 as your yearly salary (=Monthly salary Rs. 33,333/-) and if the employers offered you Rs. 4,00,000 as yearly gross CTC. then there is mis understanding
M.A.KULKARNI
From India, Mumbai
10They have provided other benefits on yearly basis like PF, Grtuity. Leave. Bonus and Medical Insurance to arrive at the Cost to Company (CTC).
If during the negotiations if you accepted 4,00,000 as CTC, then the break up seems to be correct except any mathematical mistake.
If you understood Rs. 4,00,000 as your yearly salary (=Monthly salary Rs. 33,333/-) and if the employers offered you Rs. 4,00,000 as yearly gross CTC. then there is mis understanding
M.A.KULKARNI
From India, Mumbai
Hi
I had worked in a IT company from 18/06/2013 to 10/12/2018. Monthly gratuity deducted(4.81% of Basic) from my salary as per attached my salary slip. I have worked more than 80 holidays(Sunday's and Govt Holidays) during my Services, I got extra salaries/leave for these extra working days in corresponding month . I have claimed my gratuity after my relieving, they are releasing 5 yearly gratuity to me.
I want suggestions on my below queries
1. Can I eligible for 6 years gratuity as I had worked more than 6 and half year including holidays working?
2. Can I claim gratuity which was deducted from my monthly salary?
From India, Noida
I had worked in a IT company from 18/06/2013 to 10/12/2018. Monthly gratuity deducted(4.81% of Basic) from my salary as per attached my salary slip. I have worked more than 80 holidays(Sunday's and Govt Holidays) during my Services, I got extra salaries/leave for these extra working days in corresponding month . I have claimed my gratuity after my relieving, they are releasing 5 yearly gratuity to me.
I want suggestions on my below queries
1. Can I eligible for 6 years gratuity as I had worked more than 6 and half year including holidays working?
2. Can I claim gratuity which was deducted from my monthly salary?
From India, Noida
Dear Rambir Singh, 1. To qualify for 6 years gratuity you should have worked upto and inclusive of 18th Dec. 2018. 2. You are eligible for only 5 years Gratuity, nothing more. Regards, Suresh
From India, Thane
From India, Thane
If it is part of CTC employer can deduct gratuity,and pay after completion of 5 years service. While if it is not part of CTC Employer can not deduct.
From India, Pune
From India, Pune
Dear Colleague,
No, whether part or no part of CTC , there is no question of any deduction from salary on account of gratuity. It is legally mandatory that the Employer creates fund for it and pays to eligible employees . It is not contributory in nature unlike PF and ESI. It will be illegal if employer makes any deduction for gratuity from employees' salary and is liable for prosecution for the same.
No misguiding advice pl.
Regards,
Vinayak Nagarkar
HR- Consultant
From India, Mumbai
No, whether part or no part of CTC , there is no question of any deduction from salary on account of gratuity. It is legally mandatory that the Employer creates fund for it and pays to eligible employees . It is not contributory in nature unlike PF and ESI. It will be illegal if employer makes any deduction for gratuity from employees' salary and is liable for prosecution for the same.
No misguiding advice pl.
Regards,
Vinayak Nagarkar
HR- Consultant
From India, Mumbai
Guys you won't believe!! there are few clients who deduct a particular amount per month from his employees and then disburse it as 'statutory bonus' during puja, and the same deduction is also mentioned in their pay-slip! The most tragic; even after making them aware, they chose to behave in dumbest manner!
Sometime being consultant I too want few of those clients should have labour inspection rigorously, because unless a bigger amount is levied or passes a garnishee order for bank account attachment, they will not even move from their chairs!
From India, Kolkata
Sometime being consultant I too want few of those clients should have labour inspection rigorously, because unless a bigger amount is levied or passes a garnishee order for bank account attachment, they will not even move from their chairs!
From India, Kolkata
Dear All,
There are several opinions from different experts. Let me share with you one offer letter example:-
YRLY
Basic - 2,40,000
HRA - 1,20,000
Allows- 60,000
----------------------
YRLY
GROSS- 4,20,000
-----------------------
EMPLR
PF(13%) - 31,200
GRATUITY- 11,538
BONUS - 7,000
INSURANCE- 5,000
--------------------------
CTC - 4,74,738
----------------------------
PAY ROLL/PAYSLIP
--------------
EARNING
------------
BASIC - 20,000/-
HRA - 10,000/-
ALLWS - 5,000/-
-------------------------
MNLY GR- 35,000/-
--------------------------
DEDUCTIONS
------------------
PF - 2400/-
PTAX- 200/-
TDS - 500/-(SAY)
-------------------------------
TOT DED- 3100/-
-------------------------------
NET SALARY - 31,900/-
-------------------------------
The above is clear indication that offer letter is based on CTC but pay roll/payslip is different. There is nothing wrong in it. It is problem with those Organizations who are processing pay roll from CTC through their soft ware and appearing in pay slip all deductions.
In the above example the Organization will manage the Gratuity Fund through any insurance or by own trustee and Bonus as per Payment of Bonus Act will be paid once in a year in due time. I have observed the same with some MNCs and Good Indian Organizations.
Thanks & Regds.,
S K Bandyopadhyay ( WB, HOWRAH)
-
From India, New Delhi
There are several opinions from different experts. Let me share with you one offer letter example:-
YRLY
Basic - 2,40,000
HRA - 1,20,000
Allows- 60,000
----------------------
YRLY
GROSS- 4,20,000
-----------------------
EMPLR
PF(13%) - 31,200
GRATUITY- 11,538
BONUS - 7,000
INSURANCE- 5,000
--------------------------
CTC - 4,74,738
----------------------------
PAY ROLL/PAYSLIP
--------------
EARNING
------------
BASIC - 20,000/-
HRA - 10,000/-
ALLWS - 5,000/-
-------------------------
MNLY GR- 35,000/-
--------------------------
DEDUCTIONS
------------------
PF - 2400/-
PTAX- 200/-
TDS - 500/-(SAY)
-------------------------------
TOT DED- 3100/-
-------------------------------
NET SALARY - 31,900/-
-------------------------------
The above is clear indication that offer letter is based on CTC but pay roll/payslip is different. There is nothing wrong in it. It is problem with those Organizations who are processing pay roll from CTC through their soft ware and appearing in pay slip all deductions.
In the above example the Organization will manage the Gratuity Fund through any insurance or by own trustee and Bonus as per Payment of Bonus Act will be paid once in a year in due time. I have observed the same with some MNCs and Good Indian Organizations.
Thanks & Regds.,
S K Bandyopadhyay ( WB, HOWRAH)
-
From India, New Delhi
In my opinion, Employer can not deduct Gratuity amount from wages, as its total employer responsibility to pay gratuity at the time of full and final settlement after completion of 5 years of service days. Its a direct retirement or superannuation benefit must given by the employer but compulsion to complete 5 years of service.
Generally this is paid by taking group gratuity schemes by the insurance companies for example LIC group gratuity scheme. Employer has to submit yearly working report of employees with their DOB, DOJ and salary details to the insurance company. After resignation, employer can apply gratuity amount from the insurance company with supporting documents e.g. Resignation Letter and employee record.
From India, Delhi
Generally this is paid by taking group gratuity schemes by the insurance companies for example LIC group gratuity scheme. Employer has to submit yearly working report of employees with their DOB, DOJ and salary details to the insurance company. After resignation, employer can apply gratuity amount from the insurance company with supporting documents e.g. Resignation Letter and employee record.
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
FORM-F-NOMINATI ON OF GRATUITY.pdf
Employer-employ ee_866.jpg