Understanding Gratuity Deduction in Salary and Its Compliance with Labor Laws

Dear Sir,

The gratuity amount can be deducted from the monthly salary.

Thank you.

Gratuity amount cannot be deducted from the actual salary received by an employee as it is not provided under the Gratuity Act. However, it seems some companies show it as a cost to the company or when they subscribe to a gratuity scheme of an insurance company, they may show the monthly premium as a cost to the company.

B. Saikumar
HR & Labour Law Advisor
Mumbai

If control industry the appropriate authority will be Central Labour department otherwise state labour department.
Regards
Ajit Srivastava
Hub HR – Head Statutory Compliance
Rcom:-U.P. & Uttrakhand
Tel : 0522-3031407
RIM-09335224812