Dear EmployeeX
Thanks for the details post about Gratuity.
My organization has completed six years in current year. From Last year we have started making provision for Gratuity just because our few employees has completed 5 years in the organization. From the current financial year we are planning to add gratuity amount in to Employee CTC.
If i go with the formula specified by you "Gratuity = Current basic X 15 X 5 / 26" then gratuity component from the total CTC comes to very high for which employee will not get agree at all and if calculate only for current year then the overall liability for the past year need to be bared by employer. Is there any suggestion by which we can come out with some fare result which should not hamper to employee as well to employer.
Thanks
Thanks for the details post about Gratuity.
My organization has completed six years in current year. From Last year we have started making provision for Gratuity just because our few employees has completed 5 years in the organization. From the current financial year we are planning to add gratuity amount in to Employee CTC.
If i go with the formula specified by you "Gratuity = Current basic X 15 X 5 / 26" then gratuity component from the total CTC comes to very high for which employee will not get agree at all and if calculate only for current year then the overall liability for the past year need to be bared by employer. Is there any suggestion by which we can come out with some fare result which should not hamper to employee as well to employer.
Thanks