Employer deduct gratuity from employee salary every month - it is under act?

hemlata arya
Please advise employer deduct gratuity from employee salary every month - it is under act?
nathrao
Employer is not authorised to deduct any amount from employee pay on account of gratuity.Employer has to cater for likely gratuity payments to employees as per their entitlement as and when due.
He can take LIC policy or from some other insurance company to pay due amounts to entitled employees.
But deducting any amount from employee on a/c of gratuity is illegal
Nagarkar Vinayak L
Dear colleague,
It is outright illegal to make deduction from employees' salary when the responsibility is squarely cast on employer to pay it when due and eligible from his funds or through linkage with LIC.
Make a representation to the top person and bring to his notice this grave violation of legal obligation and refrain from this act and also to refund the amount already illegally deducted.
Regards,
Vinayak Nagarkar
HR- Consultant
Shailesh Parikh_HR Pro
Dear Hmlata
Are you in CTC regime? If yes. Please check it must be notional credit and debit.
Shailesh Parikh
99 98 97 10 65
Vadodara
Rahul Chhabra
Dear Contributors,
To clarify, Employer can not deduct gratuity contribution from the employee's earnings; however showing the gratuity component as a separate component (benefits) to compute the Total Cost to the Company (TCTC) is a legit practice and is adopted by most of the companies. There is no logic to it, it is just like adding froth to the beer; inflating the Total compensation by adding benefits like Gratuity, insurance etc to make it look more lucrative.
Regards
Rahul Chhabra
Nagarkar Vinayak L
Dear Colleagues,
Gratuity does form part of CTC which is understandable. If the legal responsibility is put on the employer, where is the need for either deduction or notionally showing it as debit and credit. It is forthright ridiculous.
Regrds,
Vinayak Nagarkar
HR- Consultant
K C S Kutty
Under Payment of Gratuity Act 1972, payment of Gratuity is responsibility of employer and no contribution from employee.
brijpathak
NO-Employer can't deduct from the employee. Insurance can be taken to handover the burden is the wise way to manage .I generally advice to the employer to do so.
Brij Pathak
Manger HR
otp_mohan
Gratuity is given/paid by the employer to his/her employee for the services rendered by him during the period of employment. It is usually paid at the time of retirement but it can be paid before provided certain conditions are met.
A person is eligible to receive gratuity only if he has completed minimum five years of service with an Company/Organisation. However, it can be paid before the completion of five years at the death of an employee or if he has become disabled due to accident or disease.
Business owners will do wrong practice because of their profit.
Regards
Mohan Nair
hrsaurabh0001
Kindly check, is it CTC or Gross Salary? Gratuity is the part of CTC.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute