Question—We are showing gratuity in the CTC of employees. Let's suppose an employee leaves the company before 5 years. Do we need to pay them the gratuity amount in F&F, or are we not liable to pay him this amount before 5 years?
From India, Noida
1From India, Noida
Hi, Gratuity should not be deducted from the salaries of the employees.
If Gratuity form part of Gross salary, then it is salary of the employee and should be pay back.
However I presume your employer is making premium to insurance company for Group Gratuity scheme and the same is shown in the CTC of the employee. In such cases no need to pay the said amount to employee before the completion of 5 years. However if the employee completes 5 years then you are liable to pay Gratuity without fail.
From India, Madras
If Gratuity form part of Gross salary, then it is salary of the employee and should be pay back.
However I presume your employer is making premium to insurance company for Group Gratuity scheme and the same is shown in the CTC of the employee. In such cases no need to pay the said amount to employee before the completion of 5 years. However if the employee completes 5 years then you are liable to pay Gratuity without fail.
From India, Madras
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