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Dear All, Now a day, company makes salary Annexure in which gratuity as a part of CTC, now i want to know if an employee leaves the organisation within a year then he get gratuity amount or not? Kindly, help me out.
From India, Gurgaon

I think immense querries have arisen about this in this Platform and experts have already given their opinion.
For the purpose of clear projection of salary or CTC (Cost to Company) some companies often do this . Not only gratuity but employer's share on Provident Fund/ESI are also mentioned because these elements are costs from the employer's view, hence this is correct also.
But payment of Gratuity shall be made in accordance with provisions of Payment of Gratuity Act, where you have to put in the minimum stipulated service of 5 years.

From India, Aizawl

As a follow-on to Rkn61's above reply, I would like to add that if the statement of CTC forms part of the offer letter, there is every possibility to advance an argument later by the employee if he exits any time within 5 years of continuous service that proportionate gratuity should be paid by the employer since it is mentioned in the offer construing thereby it is a better term of gratuity as per the contract of employment.
Therefore, my submission would be that a rider may be added that in the event of exit of employment, the payment of gratuity would be strictly subject to the provisions of the Payment of Gratuity Act, 1972.

From India, Salem
Dear Mr Rawat,
Now a days companies are taking all salary heads in CTC part bcz ultimately this is cost to company.
As per rules, employees will get the benefits of all the Heads. In Case of any employee left the company in a year or before 4 years 241 days , he/she will not entitled for the Gratuity.
Himanshu Sharma

From India, Mumbai
If Gratuity is included in FCTC, it is obligation to the employer for payment of gratuity even employee left before 5 years service.
From India, Hyderabad

The employee would get nothing on account of gratuity, what the case may be.
From India, Mumbai

Dear Friends,
Thanks for your suggestion.
But as per my experience, if a company makes salary Annexure in which gratuity as a part of CTC and employee leaves the organisation within a year then he get all the deducted gratuity amount, I got my gratuity amount from my last company.
Thanks & Regards,
Kamaljeet Singh Rawat

From India, Gurgaon

It is good luck to get gratuity working only 1 yr. All components in CTC are conditional. One can not get monthly salary if all leaves are exhausted and the employee is absent . Therefore, it is a condition to get monthly salary to be present all working days or to sanction authorised leave if there is leave in the leave account of the employee. There many more example - LTA, Canteen Subsidy etc.
Similarly though Gratuity is the part of CTC does not mean without fulfilling eligibility condition to get gratuity, one cannot claim gratuity. There are organizations who are offering Co's bus to employee for office coming and going and one notional cost is in built in CTC. If any employee absent for say 10 days in a month and did not avail co's transport cannot claim the proportionate amount as it is part of CTC.
In offer letter many organizations are mentioning different component as CTC - yearly incentive will be paid at the end of the year and employee must be in the pay roll of the organization at the time of disbursement and if any employee leave the organization working 8 months cannot claim incentive in prorate basis.
S K Bandyopadhyay ( Howrah, WB)

From India, New Delhi
I really want to thank you for the great things you are writing on this website. good and interesting content.


Dear friends,
The question of gratuity for those rendered the eligibility criteria of 5 yrs 'continuous service' will be answered when the 'Labour Codes' gets implemented, likely in Dec.2020. Till such time all pending cases will have to be settled as per the Gratuity Act.

From India, Bangalore
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