Dear friends,
I think those who accepted employment looking at CTC carry a high degree of wrong notion as to the size of their package. Every such should focus their attention on the Gross salary, take home pay etc rather then the total CTC. The Gross salary is the very same emoluments on which every such person is to going to live on. The rest of the items on whether listed or not listed, revealed or not revealed, will have its impact only on separation from the present employer. In saying so, it doesn't mean one should't bather about it though.
The gratuity is one such earning among others like accumulated contributions to EPF, interest accrued thereon, EPS, leave encashment etc which matters when the F&F settlement is being made out. Gratuity amount is an earning, lawfully entitled to every employee who completed 5 yrs of 'Continuous service'. Denying this legitimate employee benefit is an offence. I request all those who decide to switch over to other employer shall take a conscious decision keeping in view the quantum of gratuity which might lost forever if they fall short of this stipulation of 5 yrs.CS.
Let us look at it like this- if a PG youth enters his/her first job at the age of 21/22 and can serve upto 60 yrs. In this active working life span, say 37/38 yrs. Hypothetically let's assume he/she switches on to say 5 or 6 jobs serving in each tenure <5 yrs continuous service. Thus there is every possibility that he/she never see a employee benefit known as 'gratuity', an amount maximum of Rs.20 lakhs as per the Act.
The Madras High Court's judgment to the effect that 4 yrs 240 days of CS though everybody is aware for the reasons unknown didn't find a place in any amendment to the Act. And therefore not widely implemented by unwilling employer as it's remains as a judgment of the Madras HC. I'm not sure whether any confirmatory plea is pending in SC so that this amendment can be applied all over the country as and when the SC rules in favour.
Pl.apply your minds on these things.
For ready ref. a gist of the Gratuity act (amendments to be updated) is attached.