Dear All,
I have a query regarding a gratuity. We have registered under Factories Act and gratuity will be applicable to our industry.
We started in the year 2010 and we started including gratuity as the part of their CTC. If we continue to do the same whether we need to repay that amt even if the employee leave before completion of 5 years.
In the same context, if employee complete 5years and still continue the service in the company and if he leaves in the 7th year hw the gratuity is calculated whether we need to pay fr 3 years (15days of basic and DA per year) Pls suggest on thsi query.
From India, Bangalore
2I have a query regarding a gratuity. We have registered under Factories Act and gratuity will be applicable to our industry.
We started in the year 2010 and we started including gratuity as the part of their CTC. If we continue to do the same whether we need to repay that amt even if the employee leave before completion of 5 years.
In the same context, if employee complete 5years and still continue the service in the company and if he leaves in the 7th year hw the gratuity is calculated whether we need to pay fr 3 years (15days of basic and DA per year) Pls suggest on thsi query.
From India, Bangalore
Hi. Gratuity is paid while employee is leaving from the organisation. It is calculated on the last drawn salary. If any employee leaves the organisation after 7 years his share is 7 Years X 15 days wages per year on last drawn wages only.
From India, Bangalore
From India, Bangalore
Thanks a lot for your valuable reply.
Shall we include Gratuity in their CTC or nt.
If we include in the CTC we need to repay it even though if an employee leaves within 5 years. Pls suggest me on this.
Wt and all the other returns need to be filed if the company is registered under Factories Act.
I am working in Palace Toyota and we are the dealers of Toyota Cars.
From India, Bangalore
Shall we include Gratuity in their CTC or nt.
If we include in the CTC we need to repay it even though if an employee leaves within 5 years. Pls suggest me on this.
Wt and all the other returns need to be filed if the company is registered under Factories Act.
I am working in Palace Toyota and we are the dealers of Toyota Cars.
From India, Bangalore
In normal cases all the companies are including all employee benefits in CTC. but the same should not reflect in Gross Pay.
If employee leaves the organisation before 5 years then no need to pay gratuity. But if Management wills to pay sure you can
From India, Bangalore
If employee leaves the organisation before 5 years then no need to pay gratuity. But if Management wills to pay sure you can
From India, Bangalore
Hi MY01
Gratuity is paying for an employee who had completed his 5 yrs of contined services in any organisation ,As a practice all are including gratuity amount in their CTC.
Formula for Gratuity is Basic + DA x 15days/26 days
Devendra
From India, Pune
Gratuity is paying for an employee who had completed his 5 yrs of contined services in any organisation ,As a practice all are including gratuity amount in their CTC.
Formula for Gratuity is Basic + DA x 15days/26 days
Devendra
From India, Pune
This is one really grounding ppt prepared by Ms. Anjali Sengar (a citeHR-ian) found it on some other gratuity related post. This, I'm sure, would help you:
https://www.citehr.com/attachments/1...?status=logged
Post address:https://www.citehr.com/444942-gratuity.html
From India, Mumbai
https://www.citehr.com/attachments/1...?status=logged
Post address:https://www.citehr.com/444942-gratuity.html
From India, Mumbai
Even if it is included in CTC, Gratuity becomes payable only after employee completes 5 years of service. But to provide transparency, make it a point to mention it in offer letter itself that CTC includes contribution towards Gratuity payable to the employee but is payable only after completion of 5 yrs of service and as per the provisions of Gratuity Act. This will provide clarity to incumbent employee before coming on board and we can preempt any grievance that would arise.
Haragopal
GM-HR
Solar Semiconductor Pvt. Ltd.
Hyderabad
From India, Hyderabad
Haragopal
GM-HR
Solar Semiconductor Pvt. Ltd.
Hyderabad
From India, Hyderabad
Ctc is independent of actual pay.
Ctc is what an employee costs the company, not what the employee gets.
Some companies, for example, also factor in training cost in ctc. So if training does not happen in a particular year, do you pay the training fees to the employee ?
Since you are so worried about ctc, have you considered that the amount you actually pay on gratuity at the end of 5 years is actually much higher than the amount you are putting in the ctc ?
From India, Mumbai
Ctc is what an employee costs the company, not what the employee gets.
Some companies, for example, also factor in training cost in ctc. So if training does not happen in a particular year, do you pay the training fees to the employee ?
Since you are so worried about ctc, have you considered that the amount you actually pay on gratuity at the end of 5 years is actually much higher than the amount you are putting in the ctc ?
From India, Mumbai
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