We have one employee will be joined shortly. He wants to opt out the gratuity as it is part of CTC. is it possible? Need your suggestion.
From India, Thane
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2From India, Thane
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Employee has not understood concept of CTC Payment of gratuity is a legal compulsion Why does the employee want to opt out of a benefit to himself
From India, Pune
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From India, Pune
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Gratuity is a good practice and also law controlled. company can make gratuity of part of CTC and can pay monthly basis but one thing is gratuity is not part of salary or monthly wage.
From India
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From India
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Hi All, Can we show gratuity in CTC basis. If yes how will you show amount in CTC. Where we can not show in paysheet or deduct in m0nthly wages. Thanks and Regards, Kashinath
From India, Hyderabad
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From India, Hyderabad
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An employee who does not require gratuity but wants to get it included in the monthly package is one who has decided not to be with the organization for five years. Don't underestimate such employees. They are very clever and will bargain that he does not require any gratuity but would like to get it included in the monthly allowances. He is sure that he is not going to be there in the company for long. And in case he completes the eligible period of five years, he knows that he will get gratuity without considering that he has already taken it on a monthly basis. My advice to HR persons is that you should not revise the salary and do not hire such persons who want the gratuity to be included in the salary.
From India, Kannur
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From India, Kannur
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in case of Death while in Service, the Employer is liable to pay Gratuity.Consequently, it is advisable not to give an option to opt out, though there is no such provision in the Act
From India, New Delhi
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From India, New Delhi
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The "gratuity" contemplated under the Payment of Gratuity Act, 1972 is strictly a terminal benefit in addition to other terminal benefits, whether statutory or otherwise. Based on the concept of CTC that is devoid of any specific statutory recognition in the matter of wage and salary administration, some employers project the gratuity, which is a future benefit, as a periodical outflow of employees' cost so as to misrepresent it as the current cost of employment with the ulterior motive of gaining an edge in salary negotiations.
The employees also fail to understand that the payment of gratuity is contingent upon certain conditions and requires no periodical financial contribution from them. Contracting out is impliedly prohibited under section 14 of the Payment of Gratuity Act, 1972.
From India, Salem
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The employees also fail to understand that the payment of gratuity is contingent upon certain conditions and requires no periodical financial contribution from them. Contracting out is impliedly prohibited under section 14 of the Payment of Gratuity Act, 1972.
From India, Salem
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In most companies, Gratuity (4.81% of CTC) is shown as a cost to the company to calculate gross. It's a notional entry and debit, as it's a future provision to pay the gratuity which is mandatory.
However, many companies don't pay employees when they leave before completing 5 years, which is unethical.
From India, Mumbai
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However, many companies don't pay employees when they leave before completing 5 years, which is unethical.
From India, Mumbai
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Many companies don't pay employees when they leave before completing 5 years, which is unethical.
Sir,
How is it unethical? The Payment of Gratuity Act stipulates a minimum of 5 years of continuous service for eligibility for gratuity to arise. If you leave before completing 5 years of service, the question of gratuity does not arise.
From India, Pune
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Sir,
How is it unethical? The Payment of Gratuity Act stipulates a minimum of 5 years of continuous service for eligibility for gratuity to arise. If you leave before completing 5 years of service, the question of gratuity does not arise.
From India, Pune
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Gratuity is paid as statutory under the Gross per Annum concept, where the amount is over and above your committed pay.
In the CTC concept, part of the employees' committed CTC is kept aside from the very first month as a provision to pay them when it becomes applicable. When negotiating with the employees, it is projected as their earning, which would be true only for employees staying with the company for more than 4.6 years.
Hope this clarifies.
Regards,
Shailesh Parikh
9998971065
From India, Mumbai
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In the CTC concept, part of the employees' committed CTC is kept aside from the very first month as a provision to pay them when it becomes applicable. When negotiating with the employees, it is projected as their earning, which would be true only for employees staying with the company for more than 4.6 years.
Hope this clarifies.
Regards,
Shailesh Parikh
9998971065
From India, Mumbai
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When an employee completes 4.6 years, he would not be entitled to gratuity. He could not have completed 190 days in a company that has a 5-day working week. The rule stipulates 5 years of continuous service and a minimum of 240/190 days in the last year of work.
From India, Pune
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From India, Pune
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It is unfortunate that today's HR fraternity, in large numbers, do not understand or try to understand what CTC is. I have mentioned this before as well. There is a difference between a Salary package and a CTC package. One must understand this distinction first. If HR professionals do not grasp this concept, how can the employees interviewed and hired by them understand and be convinced?
Regarding CTC and Gratuity, this forum has discussed this topic many times. One of the threads is provided below for the benefit of the inquirers and other members: https://www.citehr.com/455251-gratui...etion-5-a.html
I apologize for being a little harsh in my language.
From India, Mumbai
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Regarding CTC and Gratuity, this forum has discussed this topic many times. One of the threads is provided below for the benefit of the inquirers and other members: https://www.citehr.com/455251-gratui...etion-5-a.html
I apologize for being a little harsh in my language.
From India, Mumbai
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Dear Committee members,
Our company is under a partnership. One of our employees has passed away on 19/3/2019. His details are as follows:
Date of joining: 3/2/2017
Date of death: 19/3/2019
Last Basic Salary: 12,195/- per month
We do not have a superannuation scheme under LLC. Please let me know the amount the company needs to pay to the legal heir. He was married, and a succession certificate is required from his wife.
Please advise and send a reply to my email ID nisaljayant@yahoo.com.
Corporate Manager - H.R./IR
7875757963
From India, Pune
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Our company is under a partnership. One of our employees has passed away on 19/3/2019. His details are as follows:
Date of joining: 3/2/2017
Date of death: 19/3/2019
Last Basic Salary: 12,195/- per month
We do not have a superannuation scheme under LLC. Please let me know the amount the company needs to pay to the legal heir. He was married, and a succession certificate is required from his wife.
Please advise and send a reply to my email ID nisaljayant@yahoo.com.
Corporate Manager - H.R./IR
7875757963
From India, Pune
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc