24th August 2018 From India, Ahmedabad
Just because some employer includes the term Gratuity in the CTC does not change anything as far as the applicability of the Payment of Gratuity Act. It will and shall remain the same with 5 years being the criteria in an employment continuously, subject however to the technical qualification of the last year if anyone resigns/retires/superannuates in the fifth year, in which case 240 working days comes into play.
Thanks and Regards
24th August 2018 From India, Hyderabad
27th August 2018 From India, Mumbai
No part of expenditure on account of gratuity is payable by employee.
Having a gratuity fund with LIC is the company's look out for timely payment of gratuity as and when employees exit and are authorised gratuity.
27th August 2018 From India, Pune
28th August 2018 From India, Salem
Read this >>> <a href="https://www.sabkuchonline.in/2018/02/know-all-about-gratuity-hindi-gratuity.html">What is Gratuity Eligibility and other rules?</a>
29th August 2018 From India, Delhi
Please note that, the payment of gratuity is additional expenditure to employer as a part of social security benefit t employee.
However, employer has to keep provision towards payment of gratuity for having completing continuous service rendered by an employee.
But if an employee dies while working, the completion of five years will not come to picture and the payment has to be made to the nominee as per prevision.
To make more attractive package to employees, we people(HR) will create / add this amount in CTC is bad practice.
Someone has suggested to cover this risk under LIC is best option.
31st August 2018 From India, Bengaluru
Once the employee completes 5 years or 4 years and 240 days whichever is earlier in case an employee resigns, gratuity will be paid on last drawn basic @4.81% along with full and final settlement.
If gratuity is a part of CTC and an employee leave with 4 years, company is not liable to pay Gratuity.
31st August 2018 From India, Delhi
#AnonymousNothing wrong in making gratuity as part of CTC to my knowledge and need not blame HR. What is CTC, it states what is the total expenditure for an organisation on an organisation which includes all benefits statutory and non statutory that are payable to him. A benefit like LTA will be paid on termination or resignation as part of settlement, while benefits like gratuity are subject to statutory provisions. It is basically to understand by both sides what is an employees cost to organisation.
1st September 2018 From India, Hyderabad
If any component in salary is part of CTC then it should be payable to employees at time ending FY or exit of employees
there is no clause to retain this amount even statutory condition is not full fill but mostly company is agree to pay.
8th September 2018 From India
If Gratuity is included in CTC or excluded. doesn't matter.
If employee balance earned leave shall be considered to complete five years of service.
Employer can hold Gratuity payment in certain case.
Employee is dismissed through services due to misconduct as per law
8th September 2018 From India, Satara
Inclusion in CTC does not mean that you will get gratuity without completing minimum period as stipulated by law.
Calculation : Basic Salary*15/26 * more then 4 Yrs 240 Working Days... He/ she will be applicable for the Gratuity...
9th September 2018 From India, Bangalore
I suggest that the employers should refrain from writing CTC and should clearly specify in the appointment letter to his employee, the amount of salary/wages he would be paid + the statutory benefits like PF, ESI, Bonus, Gratuity etc. Even if the employer does not mention CTC, the employee understands it and gets it in accordance with the applicable law.
Give it a thought.
Best wishes and regards
13th September 2018 From India, Chandigarh
Indeed, writing the word CTC is unnecessarily giving a handle to the Controlling Authority, Appellate Authority of Higher Courts to construe its meaning against the employer. It really does not bring any benefit to him. May be he may have to face hard time to give justifications at different forums for such an unnecessary word. Hence, better avoid than feel sorry later.
14th September 2018 From India, Chandigarh
No employee would like to leave his/her liberties assured the time of hire and entitled avail complete facilities were offered.
Dear Seniors, correct me if I am wrong.
15th September 2018 From India, Bangalore