Dear Seniors Now a days company making Gratuity as a part of CTC is correct ???
From India, Indore
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1From India, Indore
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Hi,
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.
Of late, the concept of adding Gratuity in CTC (companies having tie-ups with LIC under Group Gratuity Scheme - whatever premium payable to LIC is divided by 12 and added to CTC) has become very common to make the CTC more lucrative. If the employee completes the minimum qualifying period of service as stipulated by the Act for the purpose of Gratuity payment eligibility, then they will receive the gratuity amount. In case of less service, the employer will not pay Gratuity. In such a scenario, the employee becomes a loser as they will not receive what was shown in the CTC, which is not right.
Thank you.
From India, Madras
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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.
Of late, the concept of adding Gratuity in CTC (companies having tie-ups with LIC under Group Gratuity Scheme - whatever premium payable to LIC is divided by 12 and added to CTC) has become very common to make the CTC more lucrative. If the employee completes the minimum qualifying period of service as stipulated by the Act for the purpose of Gratuity payment eligibility, then they will receive the gratuity amount. In case of less service, the employer will not pay Gratuity. In such a scenario, the employee becomes a loser as they will not receive what was shown in the CTC, which is not right.
Thank you.
From India, Madras
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