COST TO THE COMPANY

Dear Anthony P,

its great to be in Cite HR as a member where we can have a word with seniors like you. Mr Anthony i do have an query of Gratuity:

1) In our company Gratuity in (D-Retirement) is been included in our Monthly Package. my monthly gross is been divided into A-Monthly B-Quaterly C-Annum & D-Retirement Benf (PF + Gratuity+Super Annu.).

Ex: Monthly Gross = 18000 (Divided to 4 category as above)

that mean's my Retirement Benef. Is been included in my gross package.
my query his if am paying my Gratuity from my own monthly gross, so why i should get the same amt which i am paying after 5 yrs only, & if i am leaving the organization before 5 yrs (3yrs) is that i am not eligible for the same to get the amount for that 3yrs.

2) if company is paying the same excluding my monthly gross i hope than we are not eligible for the same, as this amt we will get after completing 5 yrs as per Gratuity act.

can you help me out to understand the Gratuity ACT. or is there any way to take the same from the company.


Regards,


Anthony M.

Dear Friends,

I have clarification, My company has given tea allowance Rs 6 can i add this allowance in CTC.Anybody send the CTC .

With Reagrds..., Prabhu K

you could either take it it as whatever the amt a company spend for thee benefit of an employee...u should count every penny spent(in terms of CTC that has to calculated for internal uses) and hile calculating in terms of a salary just exclude the gifts,bonuses sales incentivesetc.
PLZ CORRECT ME SENIORS IF M WRONG...

__________________
Aakash Chaudhary
Recruiter - Talent Acquisition
Keane Gurgaon
http://Keane.com

Hi,

My understanding from this discussion is that gratuity is a reward payable on completion of 5 yrs, and that if it is shown to an employee as part of his CTC, it has to be paid even if he does not complete 5 yrs.

If a company includes Gratuity in the CTC package but refuses to pay the amount set aside as Gratuity because the employee has not completed the full 5 yrs, how can we compel the co to pay up?

Regards,
Sree

how do we define cost to company?

Hi

Gratuity can not be taken as part of CTC.... unless it is paid by the Company whenever the employee leaves the Company. Otherwise, it shall be paid only on completion of continuous service of 5 years with the Company. So the either the Company or the individual employee are not sure of the continuity of service.

Some of the companies show Gratuity as part of CTC but it is not a fair practice.

Thanks
Suresh

Pl let me know what is GPA and FRP?

Hi Anthony P,

I will be completing 5yrs of service by Dec 1st 2008 in my present company, but there is a small clarification on this;
My company was previously named as xxx where i worked for 3 yrs and now it is changed to yyy where i will complete by Dec 1st 2008 - 2 yrs. But the process are same and only name has got changed inbetween these 5 yrs. So, can I claim Gratuity in this regards. Plz let me know.

Sathish KK

Hi all,

I joined a company where my CTC per annum was fixed at a certain amount and broken into different components, including gratuity. Now the company has restructured the salary structure by increasing the basic component, which has consequently had a bearing on the different components of salary such as PF, gratuity, etc. However, the "total CTC" is still the same.

As a result of the above exercise, my take-home salary has decreased on account of higher deduction of own and employer's PF contribution, as well as increase in the gratuity component.

I know the company is not justified in reducing cash component of my salary, but my query is : Can the company legally reduce cash component of my salary on account of increase in the gratuity component?

Thanks and regards,

Sachin