If gratuity is a part of CTC then gratuity is payable at the time of exit or not?

rai.sandy
Answer is Yes if he complete his gratuity eligibility period before leaving the job otherwise he will be not able to get gratuity.
Read this >>> <a href="https://www.sabkuchonline.in/2018/02/know-all-about-gratuity-hindi-gratuity.html">What is Gratuity Eligibility and other rules?</a>
Thanks
malathesha katte
Inclusion of Gratuity amount in CTC to employee's salary is not correct as per my knowledge
Please note that, the payment of gratuity is additional expenditure to employer as a part of social security benefit t employee.
However, employer has to keep provision towards payment of gratuity for having completing continuous service rendered by an employee.
But if an employee dies while working, the completion of five years will not come to picture and the payment has to be made to the nominee as per prevision.
To make more attractive package to employees, we people(HR) will create / add this amount in CTC is bad practice.
Someone has suggested to cover this risk under LIC is best option.
shweta.gehlot@yahoo.com
Every penny spent on an employee is accounted for CTC. Gratuity is also a part of CTC. As sogemar mentioned, a trust is formed for Gratuity with a Bank and the gratuity share of the employee is deposited.
Once the employee completes 5 years or 4 years and 240 days whichever is earlier in case an employee resigns, gratuity will be paid on last drawn basic @4.81% along with full and final settlement.
If gratuity is a part of CTC and an employee leave with 4 years, company is not liable to pay Gratuity.
Regards,
Shweta Gehlot
sitaramsn
Nothing wrong in making gratuity as part of CTC to my knowledge and need not blame HR. What is CTC, it states what is the total expenditure for an organisation on an organisation which includes all benefits statutory and non statutory that are payable to him. A benefit like LTA will be paid on termination or resignation as part of settlement, while benefits like gratuity are subject to statutory provisions. It is basically to understand by both sides what is an employees cost to organisation.
pk9519prince
yes you are eligible for gratuity if your grauity a part of ctc
dhananjoy-kumar
Dear All,
If any component in salary is part of CTC then it should be payable to employees at time ending FY or exit of employees
there is no clause to retain this amount even statutory condition is not full fill but mostly company is agree to pay.
Regards
Dhananjoy
vnshinde
Applicability of Gratuity as per Payment of Gratuity Act and is mandatory to every employer to pay leaving employees, who completed five years of service.
If Gratuity is included in CTC or excluded. doesn't matter.
If employee balance earned leave shall be considered to complete five years of service.
Employer can hold Gratuity payment in certain case.
Employee is dismissed through services due to misconduct as per law
ajay-vaishnav
Gratuity is payable on completion of 5 continuous years of service.
Inclusion in CTC does not mean that you will get gratuity without completing a minimum period as stipulated by law.
karunakaran24
Gratuity is payable on completion of 5 continuous years of service.
Inclusion in CTC does not mean that you will get gratuity without completing minimum period as stipulated by law.
Calculation : Basic Salary*15/26 * more then 4 Yrs 240 Working Days... He/ she will be applicable for the Gratuity...
jpratap
I think the employers are using CTC just to make it attractive to their prospective employees. He need not mention CTC because when he does so as annual package without specifying any other condition such as per Payment of Gratuity Act etc., he binds himself in a specific contract with such an employee who may always want to get his package as per terms of his employment conditions and the employer may not be in a position to wriggle out of this contract even when the employee may not have completed the requisite statutory period as enumerated in the PGA. Who knows, the Controlling Authority under the PGA may view the matter eye to eye with the applicant.
I suggest that the employers should refrain from writing CTC and should clearly specify in the appointment letter to his employee, the amount of salary/wages he would be paid + the statutory benefits like PF, ESI, Bonus, Gratuity etc. Even if the employer does not mention CTC, the employee understands it and gets it in accordance with the applicable law.
Give it a thought.
Best wishes and regards
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