Pbskumar2006
General Manager-hr
Svsrana
Hr Head With Pmi
Santoshkumarhr
Recruitment, Sap
Amitmhrm
Hr Practices
Jkct15
Deputy Manager - Hr
Anshuanshu
Professional
AJAY MOROLIA
Hr Executive
Raj_prt
Hr Professional

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We are showing Gratuity as a part of CTC while issuing Appointment Order, Can an employee claim Payment of Gratuity before completion of five year service on this ground that this is a part of CTC.
Thanks
Ajee Morolia

Hi Ajay,
Its not possible because its beyond the Law..
Then even one may claim for Pension fund also as its also a part of CTC.. which is not possible...
CTC includes so many contents, and even we actually don't get benefited of all the contents..
Regards,
Amit Seth.

My dear if you put Gratuity amount in CTC it is definitely become part of your salary and employee can ask for its payment if he leaves company before completion of 5 years. This is prevalent practice in industry. As far as payment of PF is concerned, the amount directly goes to employee's account and for it he has not to ask the employer for payment.
Regards
H R Singh

Dear Ajay
In continuation to Amit's comment he is right not all of the Part of CTC everyone is use to get but CTC means Cost to comapny its the Employer cost to keeping an employee on its rolls,it never means that everything mention in the CTC will be payable to the Employee.

Hai Moralia, We can stop the payment of Gratuity also on certain grounds, though it is a benefit to an employee and part of CTC.So he cannot claim for it. Sirisha.
Dear Friend,
Although I am unable to give the exact information you require, Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.ph...uity&submit=Go
https://www.citehr.com/search_new.ph...atuity+Payment
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
Please never loose patience once you have posted it,, give members time to reply,,,,
In CiteHR you will get A to Z information on HR…..
Regards
M. Peer Mohamed Sardhar
93831 93832

Mr. Peer, Your contribution is remarkable, only the principle is this that no one can supersede regulation, acts and the same principle also governs this issue Thanks Ajay Morolia 8) :wink:
Dear Member,
Payment of Gratuity is a statutory obligation on employers. It is payable on the completion of minimum 5 years continuous service on retirement/resignation/ death. The condition of 5 years continuous service is not applicable in case of death.
As per law, the company is liable to pay if and only if the employee has rendered a service of minimum 5 years. THIS IS PAID IN RECOGNITION OF CONTINUOUS SERVICE THE EMPLOYEE HAS RENDERED TO THE ORGANIZATION AND IF EMPLOYEE LEAVES BEFORE 5 YEARS HE IS NOT ELIGIBLE TO CLAIM GRATUITY.
However, the Payment of Gratuity Act, 1974 envisages compulsary insurance of employer's liability to pay Gratuity. This cost is obviously included in CTC. It means it is the cost borne by the employer to keep the employee in his establishment.

Hi all...
i with agree with all above valuable comments....
as per gratuity act gratuity has to be paid by the company after completion of 5 years of continues service....
but the company can formulate their internal policy and the pay the gratuity even before the 5 year term....if the internal is silent abt this in that case company is liable to pay after completion of 5 yrs service....in short it can be early but not late ....
that is wat my understanding ...hope i am correct...
Rds
-prasad

Hi,
This has been agreed in Principle that Gratuity is a part of CTC. The Annexure you attach with the appointment letter showing the break up of Salary should mention that Gratuity is payable as per Gratuity Act, 1972. This will take care of the perceived problem you feel you may face.
Regards
Subrato


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