Today on dtd. 29.11.2017 want to discuss issue regarding Gratuity & Leave Encashment as a part of CTC.
Many Employers now a day’s includes Gratuity & Leave Encashment as a part of CTC. It’s a common practice. And due to this employee suffer low in hand salary. Some typical issues every employer must think before making CTC.
GRATUITY
1. CTC means Cost To Company. Whether it is Ethically Correct to include Gratuity in CTC before first 5 Years of Employment.
2. Some employer’s plea that Gratuity is also a cost to company, since it is included in CTC. As if it is a part of CTC then if employees resigns before 5 Years or 4 Years 240 Days then aren’t employer is forcing employee to give up their hard earned money.
3. In India if we go through the Turnover (Job Switch) rate of employees it was 26.9 in 2013 and expected to go up further 27.5 in 2014 and will grow in coming years. (India in the eye of an employee turnover storm: Survey | Business Line)
As per Turnover rate we can assume that how much money is held with employer as Gratuity Till Date.
4. Is not the time now where we should have one unique no. for all employees for Gratuity by Labour Department? Whenever employee switch job Gratuity Fund of an Employee should also be Transferred from Old to Current Organisation.
Will this step lead to well being of working class?
LEAVE ENCASHMENT
5. Taking Leave Encashment as a part of CTC, Employer shows their concern about employees as it is like their Bonded labourer and employee does not need any time for his family and society.
6. Employees Earn their Leave as per provisions in Factory Act and Employer have no right to make it as a part of CTC. As it is earned by employee.
7. Leave Encashment as a part of CTC lowers in Hand Salary to Employees. And it is a trick Employers make for their own benefit.
8. Whenever Employer pay Leave Encashment calculation made is on Basic & DA. But when it comes to deduction for Leave Without Pay then Employer deducts it on Monthly Gross Salary is it justifiable.
As if now time has come where Employers should think Ethically on both the issues. I welcome your precious thoughts in this regard.
Many Employers now a day’s includes Gratuity & Leave Encashment as a part of CTC. It’s a common practice. And due to this employee suffer low in hand salary. Some typical issues every employer must think before making CTC.
GRATUITY
1. CTC means Cost To Company. Whether it is Ethically Correct to include Gratuity in CTC before first 5 Years of Employment.
2. Some employer’s plea that Gratuity is also a cost to company, since it is included in CTC. As if it is a part of CTC then if employees resigns before 5 Years or 4 Years 240 Days then aren’t employer is forcing employee to give up their hard earned money.
3. In India if we go through the Turnover (Job Switch) rate of employees it was 26.9 in 2013 and expected to go up further 27.5 in 2014 and will grow in coming years. (India in the eye of an employee turnover storm: Survey | Business Line)
As per Turnover rate we can assume that how much money is held with employer as Gratuity Till Date.
4. Is not the time now where we should have one unique no. for all employees for Gratuity by Labour Department? Whenever employee switch job Gratuity Fund of an Employee should also be Transferred from Old to Current Organisation.
Will this step lead to well being of working class?
LEAVE ENCASHMENT
5. Taking Leave Encashment as a part of CTC, Employer shows their concern about employees as it is like their Bonded labourer and employee does not need any time for his family and society.
6. Employees Earn their Leave as per provisions in Factory Act and Employer have no right to make it as a part of CTC. As it is earned by employee.
7. Leave Encashment as a part of CTC lowers in Hand Salary to Employees. And it is a trick Employers make for their own benefit.
8. Whenever Employer pay Leave Encashment calculation made is on Basic & DA. But when it comes to deduction for Leave Without Pay then Employer deducts it on Monthly Gross Salary is it justifiable.
As if now time has come where Employers should think Ethically on both the issues. I welcome your precious thoughts in this regard.