I am new to this forum and would like to have one clarification.
Grautity is paid to an employee who completes 5 continous years of service in an company. Also, Grautity is the liability of the employer and the employee does not have to contribute for it. Nowadays company adds the Grautity in the CTC to increase the CTC amount.
My question is that when Grautity is not paid each month then the Grautity amount which is shown in the CTC breakup, will it be paid each month to the employee. If yes, then will that not mean that each month Grautity is been paid to the employee from the beginning and will that employee not be paid any gratuity after 5 years of service (on resignation or termination). If no, then will that Grautity amt be deducted from the employees salary each month even though employee does not have to contribute for it.
Please clarify and assist.
Grautity is paid to an employee who completes 5 continous years of service in an company. Also, Grautity is the liability of the employer and the employee does not have to contribute for it. Nowadays company adds the Grautity in the CTC to increase the CTC amount.
My question is that when Grautity is not paid each month then the Grautity amount which is shown in the CTC breakup, will it be paid each month to the employee. If yes, then will that not mean that each month Grautity is been paid to the employee from the beginning and will that employee not be paid any gratuity after 5 years of service (on resignation or termination). If no, then will that Grautity amt be deducted from the employees salary each month even though employee does not have to contribute for it.
Please clarify and assist.