I want to know that if gratuity is a part of CTC then gratuity is payable at the time of exit or not. service period 4 yrs. Please sir give the reply as soon as possible.
From India, Dehra Dun
3From India, Dehra Dun
Hi
Just because some employer includes the term Gratuity in the CTC does not change anything as far as the applicability of the Payment of Gratuity Act. It will and shall remain the same with 5 years being the criteria in an employment continuously, subject however to the technical qualification of the last year if anyone resigns/retires/superannuates in the fifth year, in which case 240 working days comes into play.
Thanks and Regards
From India, Hyderabad
Just because some employer includes the term Gratuity in the CTC does not change anything as far as the applicability of the Payment of Gratuity Act. It will and shall remain the same with 5 years being the criteria in an employment continuously, subject however to the technical qualification of the last year if anyone resigns/retires/superannuates in the fifth year, in which case 240 working days comes into play.
Thanks and Regards
From India, Hyderabad
When an employer includes Gratuity in CTC , he does not pay out the gratuity portion in the take home salary.In case he includes it then it is his problem as he is liable to pay Gratuity after due service .
Col.Suresh Rathi
From India, Delhi
Col.Suresh Rathi
From India, Delhi
Gratuity is a statutory right of employee whoever completes 5 years in the same organization, and is a terminal benefit. The cost is to be born by employer and not employee. Gratuity can not be a part of CTC. ...
From India, New Delhi
From India, New Delhi
All costs related to employee remains part of CTC and therefore, Statutory Gratuity is part of CTC, i.e. cost to company @ 4.81%. Gratuity along with other terminal benefits are also part of the total employee cost to the company. A Trust is created for Gratuity payments with LIC and monthly premiums are paid toward this fund and the cost is charged to the employee account.
From India, Mumbai
From India, Mumbai
"A Trust is created for Gratuity payments with LIC and monthly premiums are paid toward this fund and the cost is charged to the employee account.""
No part of expenditure on account of gratuity is payable by employee.
Having a gratuity fund with LIC is the company's look out for timely payment of gratuity as and when employees exit and are authorised gratuity.
From India, Pune
No part of expenditure on account of gratuity is payable by employee.
Having a gratuity fund with LIC is the company's look out for timely payment of gratuity as and when employees exit and are authorised gratuity.
From India, Pune
CTC is the projected estimate of all the expenses to be incurred by the employer per employee in a year. Just because it is mentioned in the offer letter or appointment order, it doesn't mean that all the benefits mentioned therein should be paid to the employee who leaves the organization either on his own or otherwise unless he fulfills the conditions for their payment. Particularly, gratuity being a statutory benefit, its payment is strictly subject to the provisions of the Payment of Gratuity Act, 1972 which is a complete Code in itself on the subject-matter of gratuity as invariably suggested by all the learned members above.
From India, Salem
From India, Salem
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