Hi all,
Quite an interesting discussion. Whether Gratuity should be included in the ctc or not.
Well i worked in companies where in ctc gratuity was added and in another one gratuity was not included in the CTC>
In case gratuity is paid as per the law i.e 4.81% of basic + DA after completion of 5 yrs of service it is not included in the CTC. However if the employer is including the same in the CTC it has to be paid as by showing it in the CTC the same is shown as a part of retention amount and upon termination of employer and employee relationship the same has to be given even if the employee has not completed 5 years of service.
With Regards,
Anand
Quite an interesting discussion. Whether Gratuity should be included in the ctc or not.
Well i worked in companies where in ctc gratuity was added and in another one gratuity was not included in the CTC>
In case gratuity is paid as per the law i.e 4.81% of basic + DA after completion of 5 yrs of service it is not included in the CTC. However if the employer is including the same in the CTC it has to be paid as by showing it in the CTC the same is shown as a part of retention amount and upon termination of employer and employee relationship the same has to be given even if the employee has not completed 5 years of service.
With Regards,
Anand