Dear Sir,
My company is a multinational corporation (MNC), and I joined 8 years ago, making me eligible for gratuity. Can I include gratuity as a part of my Cost to Company (CTC)? My company does not deduct any amount from my salary, including the gratuity premium amount.
Thank you.
From India, Chennai
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My company is a multinational corporation (MNC), and I joined 8 years ago, making me eligible for gratuity. Can I include gratuity as a part of my Cost to Company (CTC)? My company does not deduct any amount from my salary, including the gratuity premium amount.
Thank you.
From India, Chennai
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As an employee, you cannot decide what is included or excluded from CTC. It is up to HR to make that decision. In most cases, gratuity is a part of CTC. Additionally, no company is allowed to deduct any amount from your salary for gratuity.
From India, Mumbai
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2508From India, Mumbai
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Thanks for your reply. But my question is can I show the Gratuity in my CTC at the time of joining the new company?
From India, Chennai
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From India, Chennai
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Dear Karkuvel,
Your company must have issued an appointment letter at the time of joining. In the appointment letter, they must have mentioned the various components of the salary. You may show the appointment letter if your future employer asks for it. The most important document is the salary slip. You may show the salary slips for the last three months. That is the prevailing procedure.
Thanks,
Dinesh Divekar
From India, Bangalore
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Your company must have issued an appointment letter at the time of joining. In the appointment letter, they must have mentioned the various components of the salary. You may show the appointment letter if your future employer asks for it. The most important document is the salary slip. You may show the salary slips for the last three months. That is the prevailing procedure.
Thanks,
Dinesh Divekar
From India, Bangalore
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Dear Karkuvel,
You are free to show the Gratuity amount as a component of the present CTC. There is nothing wrong in it. In a new organization, your GRATUITY meter will only be active after 5 years. You should show the CTC break-up while discussing remuneration matters during salary negotiation before HR, but there is no point in doing so when you report for joining. Once the remuneration part is finalized, the offer is issued, signed by you and the company, and nobody will make changes.
Regards,
R.D.S. Yadav
From India, Delhi
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You are free to show the Gratuity amount as a component of the present CTC. There is nothing wrong in it. In a new organization, your GRATUITY meter will only be active after 5 years. You should show the CTC break-up while discussing remuneration matters during salary negotiation before HR, but there is no point in doing so when you report for joining. Once the remuneration part is finalized, the offer is issued, signed by you and the company, and nobody will make changes.
Regards,
R.D.S. Yadav
From India, Delhi
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I have never come across a situation wherein an employee shows Gratuity as part of CTC. This is because one becomes eligible for Gratuity only after completion of 5 years, and it is not paid monthly or annually; it is paid upon termination of service. Furthermore, Gratuity is given as a gesture of gratitude towards the employee for their long service to the company, of not less than 5 years. It is optional to include Gratuity as part of CTC, but in my opinion, it is not advisable.
From India, Ahmadabad
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From India, Ahmadabad
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I will go with the comments of Mr. Saswata Banerjee and Mr. R.D.S Yadav put together. It is true that you are free to include the Gratuity element when mentioning your Gross Salary in an application for a fresh appointment. However, keep in mind that Gratuity is a payment made in recognition of the "Goodwill" you create with your employer. If, for any reason, this Goodwill is compromised, your employer may deduct a portion or even refuse to pay you Gratuity upon the termination of your service.
Regards,
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From India, Pune
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Regards,
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From India, Pune
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