I do agree with a view that If CTC includes Gratuity then it is income of an employee and not to be treated as welfare or social security by an employer. However I would like to bring attenetion of all my HR friends...while calculating CTC keep the gratuity separate and mention in appointment letter " Payment of Gratuity as per the Gratuity Act". SANJEEV
From India, Pune
5From India, Pune
(Gratuity = Basic+DA/26*No OF years Service *15) .Can u just explain this calculation especially wat is this las *15?. Rajesh
From India, Ernakulam
From India, Ernakulam
Dear All, In my view, it should not be added in the CTC and it is not a guranteed one, if any employee resigns before 5 years of service. thangavel S Sr. Executive - HR 99943 43043
From India, Coimbatore
From India, Coimbatore
Hi all, Allthough as per Grautity Act a person shall be eligible for entitlemnt of grautity on after completion of continous service of 5 years, but as per my understanding if an employer makes grautity as a part of monthly remunaration then the employer is liable to pay the grautity amount which he has deducted , because it the amount of a employee which has been deducted form his/her salary. Though its a malpractice adopted by most of companies, and there is no clear judgement and precedence from any court.in such case one things also be done, can file a application to the Labour Welfare Board of concerned state because if employer is not paying then its aslo may be treated as unpaid accumilation with the employer acc to my opnion which shall be goes to the Welfare Board or Should file a PIL on this point before High and am very confident that it will go in the favour of employee. Sanjay Malik Advocate
Hi, Regarding ur query i would like to enlighten you that as per the Gratuity Act, gratuity payable to employee cannot be a part of salary. In ur case also it cannot be part of ctc as it is not paid monthly in the salary. Secondly, gratuity is payable only after the complition of 5 yrs of continuous service. If you fight legally you can claim it easily because your ctc was designed by your company with a clear cut malafide intention. Any thing designed with malafide intention never stands legally. Thanks. Paramjit So go ahead and take up the matter with approriate authority,if you are interested.
From India, Chandigarh
From India, Chandigarh
Dear shikha, If Gratuity is included in CTC: then it has to be paid to employees in Full & Final, even if he leaves within 05 Years as it is a part of the income of the employees. In my previous organisation, Gratuity was included in CTC. It was paid to me for the period of 1.5 Years at the time of leaving. If Gratuity is not paid to employee, then it is a loss to the employee. Regards, Nimish Joshi 9969526325
From India, Mumbai
From India, Mumbai
Dear All, Gratuity cannot be included in CTC part. Even though it is included in CTC, employer has to pay the Gratuity to the employee for completed years of service. Regards, Nimish Joshi
From India, Mumbai
From India, Mumbai
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Gratuity to teachers - Revised SC order.pdf
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