Gratuity deduction regarding

alenshiva · #1 (**permalink**) 28-10-2008, 12:26 PM

Dear All,

Why do some companies show Gratuity deduction in the CTC, can an employee who resigns from the company before five years of service can get the money back. Please give me some valuable insights on the same.

Regards,
alenshiva

Madhu.T.K · #2 (**permalink**) 29-10-2008, 10:47 AM

An employee who leaves before 5 years of service is not eligible for gratuity. Moreover, gratuity is a payment by the employer alone and not a 'contribution' provident fund or ESI. The system of showing gratuity as Cost to Company and deducting the same right from the first salary is illegal and should be discouraged. I have a very different view about the CTC concept and is reflected in my posting " CTC Vs BTC". Please go through it using the following link.

http://www.citehr.com/blogs/madhu-t-...tc-vs-btc.html

Regards,

Madhu.T.K

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