Dear Friends,
My brother is working in a private company since the last 5 yrs and from Oct his salary has been increased. His company pays gratuity to the employees.
I would like to ask the following questions.
1) Till date his gratuity was not included in his CTC. From Oct with the increase in salary, the gratuity is being shown in his CTC and some amount is being deducted from his salary. Is this OK ???
As far as I am aware, gratuity, unlike PF & ESIC, is solely to be contributed by the employer and not the employee. Do I stand corrected???
Somewhere, I have read that contibution towards gratuity differs from company to company. If so, can a company which was not till date deducting the gratuity from the CTC start deducting it now.
What is the actual procedure for contribution towards gratuity. I know the formula of calculating gratuity, I just want to clarify the procedure for contribution towards gratuity --- both on the part of the employer & the employee (If that is the case).
Awaiting your prompt replies.
Regards
My brother is working in a private company since the last 5 yrs and from Oct his salary has been increased. His company pays gratuity to the employees.
I would like to ask the following questions.
1) Till date his gratuity was not included in his CTC. From Oct with the increase in salary, the gratuity is being shown in his CTC and some amount is being deducted from his salary. Is this OK ???
As far as I am aware, gratuity, unlike PF & ESIC, is solely to be contributed by the employer and not the employee. Do I stand corrected???
Somewhere, I have read that contibution towards gratuity differs from company to company. If so, can a company which was not till date deducting the gratuity from the CTC start deducting it now.
What is the actual procedure for contribution towards gratuity. I know the formula of calculating gratuity, I just want to clarify the procedure for contribution towards gratuity --- both on the part of the employer & the employee (If that is the case).
Awaiting your prompt replies.
Regards