My previous employer showed gratuity in my CTC and they deducted the same on a monthly basis for approximately 4 years. Can I claim my gratuity as part of my CTC? Request to help me out on this.
From India, Bengaluru
1From India, Bengaluru
Even though Gratuity is shown to be a part of CTC, you can not claim it till you complete 5 years of continuous service in the organization.
From India, Delhi
From India, Delhi
Hi
One needs to understand that the word CTC is a cosmetic figure to show the company in a better position towards the employees than they actually are. It is basically Cost to the Company which should in no way be treated as same as Gross Salary of the employee. Only when they show under the term Gross Salary of the employee you can take the fight to the employer's court else NO.
As far as the Payment of Gratuity Act, 1972 is concerned it is quite clear that one has to complete full 5 years to stake a claim for Gratuity, as rightly pointed out.
Thanks and Regards
From India, Hyderabad
One needs to understand that the word CTC is a cosmetic figure to show the company in a better position towards the employees than they actually are. It is basically Cost to the Company which should in no way be treated as same as Gross Salary of the employee. Only when they show under the term Gross Salary of the employee you can take the fight to the employer's court else NO.
As far as the Payment of Gratuity Act, 1972 is concerned it is quite clear that one has to complete full 5 years to stake a claim for Gratuity, as rightly pointed out.
Thanks and Regards
From India, Hyderabad
Cost to company (CTC) is a term for the total salary package of an employee. It indicates the total amount of expenses an employer (organization) spends on an employee during one year. It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period. So understood Salary is a part of CTC additional benefits will be the investment from employer Gratuity is contributed by Employer either through insurance policy or create gratuity fund but employee can only claim it after completion of 5 yrs of service not on 1-2-3-4 years.
thanks & regards
From India, Ghaziabad
thanks & regards
From India, Ghaziabad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Previous Employer.xls
Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
FORM-F-NOMINATI ON OF GRATUITY.pdf