Dear Members,
Seeking help from all Seniors on gratuity !!!
My questions on gratuity are
1) what is the definition of CTC as per law ? is it mention any where in our law ?
2) If company is deducting Gratuity From CTC and if Employee leave the company (normal)in 1 year can he be claim for the Reimbursement amount that is deducted from his CTC? If yes then how ?
From India, Delhi
Seeking help from all Seniors on gratuity !!!
My questions on gratuity are
1) what is the definition of CTC as per law ? is it mention any where in our law ?
2) If company is deducting Gratuity From CTC and if Employee leave the company (normal)in 1 year can he be claim for the Reimbursement amount that is deducted from his CTC? If yes then how ?
From India, Delhi
There is no word called CTC under any law in India but it is a derived term denoting the cost the company would incur by employing one person by way of fixed salary, statutory contributions payable monthly, annually or at any date which may even fall when the employee is superannuated, variable pay like incentives, commissions etc, and may include amenities provided by the company like quarters, cab facilities, subsidised food etc. Therefore, CTC should not be taken as salary payout but should be taken as cost to company by all means.
As gratuity is a payment which may fall due when the employee leaves after putting in a service of at least five years, the same is also a cost to company. The employer is under a legal obligation to provide for a gratuity fund every year based on actuarial valuation. It should be remembered that paying gratuity is mandatory in case of death of employee without completing the qualifying period of five years and providing for gratuity every year will make the company safer with regard to finance in such occasions.
Normally CTC is an offer and will not be reflected in the salary sheet nor will any amount be deducted from the SALARY of the employee every month. But in case the salary slip contains gratuity as a deduction from the salary, it should be payable to the employee once he leaves even without completing the qualifying period of five years.
Madhu.T.K
From India, Kannur
4193As gratuity is a payment which may fall due when the employee leaves after putting in a service of at least five years, the same is also a cost to company. The employer is under a legal obligation to provide for a gratuity fund every year based on actuarial valuation. It should be remembered that paying gratuity is mandatory in case of death of employee without completing the qualifying period of five years and providing for gratuity every year will make the company safer with regard to finance in such occasions.
Normally CTC is an offer and will not be reflected in the salary sheet nor will any amount be deducted from the SALARY of the employee every month. But in case the salary slip contains gratuity as a deduction from the salary, it should be payable to the employee once he leaves even without completing the qualifying period of five years.
Madhu.T.K
From India, Kannur
Mr. Madhu T.K. our senior member has aptly said and explained in detail, in nutshell if your salary slip is showing Gratuity as deduction you can very well claim it legally even if the qualifying terms are not met.
From India, Ahmadabad
From India, Ahmadabad
Hello Sachin,
Just to add to the correct responses above, gratuity will be given during the full and final settlement of the said employee.
With regards,
Vaishalee Parkhi
https://www.linkedin.com/pub/vaishal...khi/62/9ab/6b0
From India, Pune
Just to add to the correct responses above, gratuity will be given during the full and final settlement of the said employee.
With regards,
Vaishalee Parkhi
https://www.linkedin.com/pub/vaishal...khi/62/9ab/6b0
From India, Pune
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Gratuity Form N- seeking intervention of Labour Officer.pdf