Shishirs
Employee
Deepak Khandelwal
Dy Manager - Hr
Amitmhrm
Hr Practices
Malikjs
Gm (hr)
Brandon 69
Manager - Hr
Aby_vas
Dm - Ca
+5 Others

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Dear Seniors’
Would like to ask one question related to Gratuity-
As we all know that the Gratuity is payable after completion of 5 years of service, but if the Gratuity amount (i.e. 4.8% of the basic) is shown in Aptt. Letter as part of the CTC and employer deducting the same amount form salary every month is refundable at the time of resignation (After completion of 2+ years of service) or not??
Regards,
Shishir

dear
mr vinod has explained nicely.employee does not have any concern with ctc.
employer has calculated his cost.
if any employer is giving appointment letter on the basis of ctc means they donot have capable person in their personnel dept.
how you can show employer share of PF ,gratuity,bonus etc in appointment letter.
regards
j s malik

According Gratuity Act only after 5 years continuous service one is elibigle to get Gratuity Amount. Prashant
Dear Vinod,
Thanks for your valuable response but at the time of negotiation we are discussing on Annual CTC,
I think its not right to calculate the Gratuity in CTC, can we ask an question against this to employer?
Regards,
Shishir

Dear Vinod,
Thanks for your valuable response but at the time of negotiation we are discussing on Annual CTC,
I think its not right to calculate the Gratuity in CTC, can we ask an question against this to employer?
Regards,
Shishir

Hi
Nowadays many Companies are using this type of a gimmick to make the CTC appear more attractive without it actually being so.
Not many people stick to the same Company for 5 years and the end result is that it is just an add-on gimmick of sorts: its not being deducted and neither would be it 'refunded' as you wanted to know, at the time you quit.
You cannot do anything in this regard.

Dear Shishir,
Gratuity percentage is calculated in the CTC by employer side to calculate their Cost towards the employment of a particular person.
But this is not been refunded in case of leaving before completion of 5 years of service.
Regards,
Amit Seth.

Mr. Amit Seth's reply is genuine, it is merely employers are calculating gratuity in CTC to attaract highly skilled professionals.
The gratuity will be paid after complition of 4 years and 10 months.
regards,
Parvez Pasta

:icon7: Dear All,
We are also showing Gratuity as a part of CTC but if any Employee departs from the Compnany, we not refunding the accumulated balance of Gratuity amount, the reason behind this is every month in the Books of Accounts we need to make the provision of that amount, this is some thing called as NOTIONAL PAYMENT.

Dear All, Still i am not understand, whether gratuity is calculate in CTC or not ? Because if it is under benefits provide from employer just as like pf employer contr. Regards, Abhijit

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