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I have one query regarding gratuity. Actually, I have recently joined a firm, and they deducted my salary under the name of gratuity, even though I have not completed five years in this organization yet. Can they do this? Are they allowed to reduce my salary in the name of gratuity reimbursement?

Please provide detailed assistance in resolving this query.

Regards,
Shweta

From India, Gurgaon
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I feel the above provision is not a deduction towards gratuity because gratuity is a benefit to be provided by the employer in addition to the salary without any contribution from employees. However, this benefit may be shown in the CTC.

Regards,
Abbas.P.S

From India, Bangalore
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Dear Shwetha, you may not be eligible for gratuity at the moment. However, after completing five years, you will receive gratuity for each year, including the current year. This is why it is being reflected in the current CTC.

Regards,
Abbas.P.S

From India, Bangalore
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