My previous employer showed gratuity in my CTC and they deducted the same on a monthly basis for approximately 4 years. Can I claim my gratuity as part of my CTC? Request to help me out on this.
From India, Bengaluru
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1From India, Bengaluru
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Even though Gratuity is shown to be a part of CTC, you can not claim it till you complete 5 years of continuous service in the organization.
From India, Delhi
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From India, Delhi
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Hi,
One needs to understand that the word CTC is a cosmetic figure to show the company in a better position towards the employees than they actually are. It is basically Cost to the Company, which should in no way be treated as the same as the Gross Salary of the employee. Only when they show under the term Gross Salary of the employee, you can take the fight to the employer's court; else NO.
As far as the Payment of Gratuity Act, 1972 is concerned, it is quite clear that one has to complete a full 5 years to stake a claim for Gratuity, as rightly pointed out.
Thanks and Regards
From India, Hyderabad
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One needs to understand that the word CTC is a cosmetic figure to show the company in a better position towards the employees than they actually are. It is basically Cost to the Company, which should in no way be treated as the same as the Gross Salary of the employee. Only when they show under the term Gross Salary of the employee, you can take the fight to the employer's court; else NO.
As far as the Payment of Gratuity Act, 1972 is concerned, it is quite clear that one has to complete a full 5 years to stake a claim for Gratuity, as rightly pointed out.
Thanks and Regards
From India, Hyderabad
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OK but if Company deducted amount as "Gratuity" from Gross Salary then?
From India, Ahmadabad
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From India, Ahmadabad
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Cost to company (CTC) is a term for the total salary package of an employee. It indicates the total amount of expenses an employer (organization) spends on an employee during one year. It is calculated by adding the salary to the cost of all additional benefits an employee receives during the service period.
So, understood salary is a part of CTC, and additional benefits will be the investment from the employer. Gratuity is contributed by the employer either through an insurance policy or a gratuity fund, but an employee can only claim it after completion of 5 years of service, not on 1-2-3-4 years.
Thanks & regards
From India, Ghaziabad
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So, understood salary is a part of CTC, and additional benefits will be the investment from the employer. Gratuity is contributed by the employer either through an insurance policy or a gratuity fund, but an employee can only claim it after completion of 5 years of service, not on 1-2-3-4 years.
Thanks & regards
From India, Ghaziabad
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