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
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3From India, Dehra Dun
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Answer in short is NO.
Gratuity is payable on completion of 5 continuous years of service. Inclusion in CTC does not mean that you will get gratuity without completing the minimum period as stipulated by law.
From India, Pune
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Gratuity is payable on completion of 5 continuous years of service. Inclusion in CTC does not mean that you will get gratuity without completing the minimum period as stipulated by law.
From India, Pune
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Hi,
Just because some employers include 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 employment continuously, subject, however, to the technical qualification of the last year if anyone resigns, retires, or superannuates in the fifth year, in which case 240 working days come into play.
Thanks and Regards
From India, Hyderabad
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Just because some employers include 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 employment continuously, subject, however, to the technical qualification of the last year if anyone resigns, retires, or superannuates in the fifth year, in which case 240 working days come into play.
Thanks and Regards
From India, Hyderabad
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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
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Col. Suresh Rathi
From India, Delhi
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Statutory Gratuity is part of CTC, and the cost is allocated towards employee costs, which is payable upon completion of 4 years and 240 days. If your salary is being deducted towards gratuity, then you can claim the same irrespective of your CTC.
From India, Mumbai
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From India, Mumbai
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Gratuity is a statutory right of an employee who completes 5 years in the same organization and is a terminal benefit. The cost is to be borne by the employer and not the employee. Gratuity cannot be a part of CTC.
From India, New Delhi
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From India, New Delhi
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All costs related to employees remain part of CTC. Therefore, Statutory Gratuity is part of CTC, i.e., cost to the company at 4.81%. Gratuity, along with other terminal benefits, is 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. The cost is then charged to the employee's account.
From India, Mumbai
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From India, Mumbai
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"A trust is created for gratuity payments with LIC, and monthly premiums are paid toward this fund. The cost is charged to the employee's account.
No part of the expenditure on account of gratuity is payable by the employee. Having a gratuity fund with LIC is the company's lookout for the timely payment of gratuity as and when employees exit and are authorized gratuity."
From India, Pune
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No part of the expenditure on account of gratuity is payable by the employee. Having a gratuity fund with LIC is the company's lookout for the timely payment of gratuity as and when employees exit and are authorized gratuity."
From India, Pune
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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
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From India, Salem
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