Hi,
I was working in a company from May 2007 to Mar 2008 where they had mentioned that LTA is applicable to a confirmed employee only after completion of one year of service.
I worked in the company for 10 months. I was confirmed after 6 months.
Can the company frame such rules or
Is there any Act under which I can claim LTA ?
Regards
Srinivas Mani
09833418230

From India, Mumbai

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Hi Shrivnivas,
First R u Still working in the same conpany?
If the company policy mentiones clause that LTA will be paid or can be claimed after 1 year and you are still working there , you can claim only after one year. But you have left the organisation , then they should pay you the LTA amount due to you.
Regards,
Harshad

From India, Mumbai
Hi Srinivas
LTA is generally given as a part of the fixed salary component. Hence whenever you leave, it is calculated for that period and paid in your final settlement after deducting the tax. For example if your LTA is 24000/-, and you leave working after 4 months, then you get 8000/- of LTA in final settlement which is taxed.
Regards
Kamini

From India, Hyderabad
Hi Harshad and Kamini
Thanks. I have left the said company in March 2008, however, the company says that LTA can be claimed only after 1 year. I Joined the company on May 9 2007 and was on probation till Nov 2007 and after that I was confirmed. I left the job in March 2008. As per you, I can claim LTA. Is there any act on the basis of which I can claim. the FY 2007-08 has also passed, would they give. They have not given it as part of full and final settlement saying that it can be claimed only if a person has worked for more than 1 year.
If you can provide the Act, I can follow up with them.
Thanks again
Srinivas Mani
09833418230

From India, Mumbai
Hi,
There is no specific act for it. Bt since you have resigned they should pay you the LTA in your F & F settlement. We also have the same clause regarding LTA , but we pay if perosn leaves before completion of year in the F & F settlement. So followup with your earlier organisation they should pay you since LTA is a part of your CTC.
Regards,
Harshad

From India, Mumbai
Dear Shrinivasmani,
As said earlier your employer is suppose to pay due amout in your F& F from company.
To make LTA as Non Taxable there is guideline in the IT Act which needs to be observed.
Regards,
ACCHR

From India, Mumbai
LTA APPLICABLE ?

Hello Harshad, Kamini and ACCHR,

The following was my salary structure in the previous organisation where the LTA was also included in my Annual CTC. I have also attached a file stating the salary. You may also refer the same.

Monthly Salary

Type of SalaryPer MonthBasic Salary14670Conveyance800HRA8500Medical Reimbursement1250Other Allowance 7560Sodexho Meal Coupons910Provident Fund1760Leave Travel AllowanceMonthly Salary35450

Annual Salary

Type of SalaryPer AnnumBasic Salary176040Conveyance9600HRA102000Medical Reimbursement15000Other Allowance 90720Sodexho Meal Coupons10920Provident Fund21120Leave Travel Allowance14670Annual CTC440070

After putting my resignation and before the full and final settlement, I had orally asked HR for payment of LTA. However, the HR informed that this is applicable to employees who have completed one year of service.

My appointment/offer letter of my company stated the following w.r.t LTA.

You are entitled to claim LTA only after completion of one year of service in the company.

Can you confirm now that with the above complete details provided whether I can claim LTA from them and if they inform that I am not eligible, how should I proceed further in the matter to claim LTA.

Thanks & Regards
Srinivas Mani
09833418230
Email :

From India, Mumbai

Attached Files (Download Requires Membership)
File Type: pdf SALARYPDF.pdf (7.2 KB, 257 views)

Hi
LTA is not a statutory policy but it is a company policy. If it was mentioned in your Appointment letter that you are eligible for it only after one year of completion of service, then you cannot claim it if you leave before One year.
Regards
Kamini

From India, Hyderabad
Srinivas,
LTA is normally applicable after confirmation and if the employee has few Privilege leaves to his credit. Pls note that PLs are also normally credited on completion of every yr of service.
In your case, since it was specifically mentioned that LTA is applicable only after completion of 1 year and that was also signed and accepted by you, then you cannot claim for LTA before completion of a year.

From India, Bangalore
Dear,
LTA is a part of your CTC which was agreed at the time of appointment, ofcourse you will entitile for LTA after one year service because of it is normily yearly paid benefit. But in case of Full & Final settelment u have right to claim all due amounts till date u served with company.
it is another matter that it will be taxable.
Thanks

From India, Mumbai

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