Dear All,
Can gratuity be shown as part of CTC, If yes then what are its implications & repercussion.
Also if we show gratuity as the part of CTC then is it compulsory to pay irrespective of completion of 5 year, which was being suggest by our consultant on which i have doubt...
From India, Surat
Can gratuity be shown as part of CTC, If yes then what are its implications & repercussion.
Also if we show gratuity as the part of CTC then is it compulsory to pay irrespective of completion of 5 year, which was being suggest by our consultant on which i have doubt...
From India, Surat
Dear Friend,
You may consider Gratuity as part of the cost to company (CTC) for your employees. But if any employee qualifies for gratuity under the Payment of Gratuity Act you need to pay them without fail.
Many of the companies who have taken different plans from insurance companies pay regular EMIs to those institutions therefore they consider gratuity as an integral part of CTC. In case any employee dies or is permanently disabled you need to pay them irrespective of whether five years being completed or not.
Warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
141You may consider Gratuity as part of the cost to company (CTC) for your employees. But if any employee qualifies for gratuity under the Payment of Gratuity Act you need to pay them without fail.
Many of the companies who have taken different plans from insurance companies pay regular EMIs to those institutions therefore they consider gratuity as an integral part of CTC. In case any employee dies or is permanently disabled you need to pay them irrespective of whether five years being completed or not.
Warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
Dear Mr.Ketan,
The CTC concept is introduced to budget the liability of an employee in the organisation during the financial year. It is factual in nature but not exact. The Gratuity is applicable to all employees on terms of Act. It will be paid without fail to employee when he/she became eligible (even if not shown/mentioned in CTC).
In the CTC the direct & indirect burdens on an employee shown. The Gratuity can be shown in the CTC b'cause it is direct/indirect burden on organisation.
Some employer's have the policy to make provision of certain amount against the Gratuity Liability and some are having Gratuity Term Insurance Policy with HDFC, LIC etc Insurance Companies. Yearly/Monthly employer has to pay the premium to the Insurance company against GTI Scheme.
Regards,
Madhav Kalele
From India, Mumbai
The CTC concept is introduced to budget the liability of an employee in the organisation during the financial year. It is factual in nature but not exact. The Gratuity is applicable to all employees on terms of Act. It will be paid without fail to employee when he/she became eligible (even if not shown/mentioned in CTC).
In the CTC the direct & indirect burdens on an employee shown. The Gratuity can be shown in the CTC b'cause it is direct/indirect burden on organisation.
Some employer's have the policy to make provision of certain amount against the Gratuity Liability and some are having Gratuity Term Insurance Policy with HDFC, LIC etc Insurance Companies. Yearly/Monthly employer has to pay the premium to the Insurance company against GTI Scheme.
Regards,
Madhav Kalele
From India, Mumbai
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