Greetings to all Seniors,
i recently joined a Trading company as an HR Generalist in Faridabad, i found some flows in our company\\\'s current salary structure, in which Gratuity is a part of CTC, it\\\'s over and above Gross salary and apart from Gratuity, Bonus and Leave encashment is also a part of CTC. due to which lot of employee have confusion and dissatisfaction about their salary package that what they were offered and what they are getting as their in hand salary.
Now i am confused.! Can Gratuity be a part of CTC...?what is a legal framework in this.
Because i always listen and understand that gratuity is a kind of Loyalty bonus to employee who worked more that 5 years in a company and there is no deduction from employee salary part on monthly basis. but here in our company it seems as a deduction being a part of CTC.
Plz help me out with your valuable replyies, so that i can approach our director for the required changes.
thanks
Rishipal Saini
From India, Delhi
i recently joined a Trading company as an HR Generalist in Faridabad, i found some flows in our company\\\'s current salary structure, in which Gratuity is a part of CTC, it\\\'s over and above Gross salary and apart from Gratuity, Bonus and Leave encashment is also a part of CTC. due to which lot of employee have confusion and dissatisfaction about their salary package that what they were offered and what they are getting as their in hand salary.
Now i am confused.! Can Gratuity be a part of CTC...?what is a legal framework in this.
Because i always listen and understand that gratuity is a kind of Loyalty bonus to employee who worked more that 5 years in a company and there is no deduction from employee salary part on monthly basis. but here in our company it seems as a deduction being a part of CTC.
Plz help me out with your valuable replyies, so that i can approach our director for the required changes.
thanks
Rishipal Saini
From India, Delhi
Dear Rishi,
Gratuity is not a part of of salary. however it can be clubbled in CTC. some of companies are using there new ideas to make ctc.
It's depend on the company policy and we need to understand the concept of CTC very carefully.
However Gratuity is a Retirement Paln instead of Loyalty Bonus.
Regards,
Kamesh
From India, Gurgaon
1Gratuity is not a part of of salary. however it can be clubbled in CTC. some of companies are using there new ideas to make ctc.
It's depend on the company policy and we need to understand the concept of CTC very carefully.
However Gratuity is a Retirement Paln instead of Loyalty Bonus.
Regards,
Kamesh
From India, Gurgaon
Dear kamlesh thanks for reply..
well, i agree with the fact that some companies started applying their innovative ideas regarding gratuity to retain employee by making it a part of CTC. but again there is a query, that how to fix that gratuity and leave encasement share into yearly CTC and then in monthly CTC.
What i have understood regarding gratuity fixation in CTC. It should not be more than 15 days of basic salary divided into 12 months equally as a part of CTC.
e.g. if an employee monthly CTC is Rs. 20,000 k
and basic salary is Rs. 10,000 k
then the Gratuity share in a month CTC should be = Rs. 417
plz Seniors suggest me is that right way to calculate this and if yes plz also suggest how to fix leave encasement share in CTC.
thanks in Advance
Rishipal
Budding HR Professional
From India, Delhi
well, i agree with the fact that some companies started applying their innovative ideas regarding gratuity to retain employee by making it a part of CTC. but again there is a query, that how to fix that gratuity and leave encasement share into yearly CTC and then in monthly CTC.
What i have understood regarding gratuity fixation in CTC. It should not be more than 15 days of basic salary divided into 12 months equally as a part of CTC.
e.g. if an employee monthly CTC is Rs. 20,000 k
and basic salary is Rs. 10,000 k
then the Gratuity share in a month CTC should be = Rs. 417
plz Seniors suggest me is that right way to calculate this and if yes plz also suggest how to fix leave encasement share in CTC.
thanks in Advance
Rishipal
Budding HR Professional
From India, Delhi
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