Legally, there is no provision to deduct gratuity from an employee.
The CTC concept is administrative in nature and cannot override legal provisions. Gratuity is an employer liability, and they need to account for it as a business expense.
Considering a Group Gratuity policy might be a viable option.
From India, Pune
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3180The CTC concept is administrative in nature and cannot override legal provisions. Gratuity is an employer liability, and they need to account for it as a business expense.
Considering a Group Gratuity policy might be a viable option.
From India, Pune
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Kindly guide, if any employee from a private organization leaves the job after 3 years, is he eligible for gratuity amount? The amount is shown as part of CTC in the appointment letter. As per the rule, if it is due to him after 5 years, what about the amount shown in the letter? How will the employee benefit from it?
From India, Pune
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From India, Pune
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Dear All,
Those who are eligible to understand CTC and can comprehend it, showing deductions in CTC is totally fraudulent. As the name suggests, how can you decide before the period? It is fraud against the employee and their future job prospects. Such employers just show high figures and end up paying less in order to attract applicants and deceive new hires.
I urge all of you not to engage in this practice at your workplace and never support such manipulative tactics with employees because one works hard to earn, and someone needs to support their family. Although CTC is not defined anywhere in Indian law, it is important to be aware of fake employers.
Thanks,
From India, Gurgaon
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Those who are eligible to understand CTC and can comprehend it, showing deductions in CTC is totally fraudulent. As the name suggests, how can you decide before the period? It is fraud against the employee and their future job prospects. Such employers just show high figures and end up paying less in order to attract applicants and deceive new hires.
I urge all of you not to engage in this practice at your workplace and never support such manipulative tactics with employees because one works hard to earn, and someone needs to support their family. Although CTC is not defined anywhere in Indian law, it is important to be aware of fake employers.
Thanks,
From India, Gurgaon
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Dear, Please check, your CTC structure. If there is, then it is ok. You have given consent on the same. THanks !!
From India, Delhi
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From India, Delhi
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Dear Seniors, If someone had joined a organization on 1/3/2014 and left on 28/2/2019, whether he is eligible for payment of gratuity or not. Please advise. Regards, P.K.Singh
From India, Bhopal
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From India, Bhopal
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Dear Hemlata,
Please refer to your offer letter containing the annexure of CTC structure. If it is stated and you have provided a signed copy of the same to your HR department, then they have the right to deduct the amount from your salary.
Regards
From India, Delhi
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Please refer to your offer letter containing the annexure of CTC structure. If it is stated and you have provided a signed copy of the same to your HR department, then they have the right to deduct the amount from your salary.
Regards
From India, Delhi
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Dear colleague,
This utterly wrong view which disregards the employer's legal responsibility to bear the cost of the Gratuity. Any deduction from the monthly gross salary on account of gratuity is illegal.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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This utterly wrong view which disregards the employer's legal responsibility to bear the cost of the Gratuity. Any deduction from the monthly gross salary on account of gratuity is illegal.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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As per my understanding, there is no harm in deducting the gratuity amount from CTC with the following conditions:
1. In case an employee leaves the company before completing 5 years as per the Gratuity Act, then the employee is entitled to receive the amount which was deducted from the CTC.
2. If an employee leaves the company after 5 years, then as per the statute, they will receive their payment.
I don't feel any violation of the law.
From India, Bhubaneswar
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1. In case an employee leaves the company before completing 5 years as per the Gratuity Act, then the employee is entitled to receive the amount which was deducted from the CTC.
2. If an employee leaves the company after 5 years, then as per the statute, they will receive their payment.
I don't feel any violation of the law.
From India, Bhubaneswar
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Employer deducts gratuity from employee salary every month. The answer is NO. Gratuity is a part of the salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Gratuity is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job.
However, many organizations declare the gratuity amount as part of the CTC so that they can show a higher CTC given to the employee, and if it is part of CTC, it should be paid to the employee even if he leaves the job before completion of 5 years.
Regards,
Mayan Rajput
Aurangabad
From India, Mumbai
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However, many organizations declare the gratuity amount as part of the CTC so that they can show a higher CTC given to the employee, and if it is part of CTC, it should be paid to the employee even if he leaves the job before completion of 5 years.
Regards,
Mayan Rajput
Aurangabad
From India, Mumbai
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Legal Compliance Plan.xls