Hi all,
Quite an interesting discussion. Whether Gratuity should be included in the ctc or not.
Well i worked in companies where in ctc gratuity was added and in another one gratuity was not included in the CTC>
In case gratuity is paid as per the law i.e 4.81% of basic + DA after completion of 5 yrs of service it is not included in the CTC. However if the employer is including the same in the CTC it has to be paid as by showing it in the CTC the same is shown as a part of retention amount and upon termination of employer and employee relationship the same has to be given even if the employee has not completed 5 years of service.
With Regards,
Anand
From United States
2Quite an interesting discussion. Whether Gratuity should be included in the ctc or not.
Well i worked in companies where in ctc gratuity was added and in another one gratuity was not included in the CTC>
In case gratuity is paid as per the law i.e 4.81% of basic + DA after completion of 5 yrs of service it is not included in the CTC. However if the employer is including the same in the CTC it has to be paid as by showing it in the CTC the same is shown as a part of retention amount and upon termination of employer and employee relationship the same has to be given even if the employee has not completed 5 years of service.
With Regards,
Anand
From United States
Dear Friends,
Why confusion on Gratuity???? CTC means COST TO COMPANY====any cost/expenses towards emplyees counts as CTC. We should know it. If we are including gratuity and paying without waiting of 5 yrs completion period, it is part of CTC. If don't include, it is also a part of CTC, if we pay after 5 yrs. But We should fix/create two type of CTC:
a) Monthly CTC
b) Annual CTC
If we do like this, our confusion will go away.
Regards
Sidheshwar
From India, Bangalore
Why confusion on Gratuity???? CTC means COST TO COMPANY====any cost/expenses towards emplyees counts as CTC. We should know it. If we are including gratuity and paying without waiting of 5 yrs completion period, it is part of CTC. If don't include, it is also a part of CTC, if we pay after 5 yrs. But We should fix/create two type of CTC:
a) Monthly CTC
b) Annual CTC
If we do like this, our confusion will go away.
Regards
Sidheshwar
From India, Bangalore
Dear Friends, For better understanding, I m enclosing a very gud CTC format which will solve our issue pls. Regards Sidheshwar
From India, Bangalore
From India, Bangalore
Hi All,
I have recently joined an organisation where I have been given the option to structure my own salary. My CTC is Rs. 23000 pm. I would be grateful if anybody would make up a structure for me with max amt in hand and least deductions/taxes.
Thanks,
Devjit
From India, Gurgaon
I have recently joined an organisation where I have been given the option to structure my own salary. My CTC is Rs. 23000 pm. I would be grateful if anybody would make up a structure for me with max amt in hand and least deductions/taxes.
Thanks,
Devjit
From India, Gurgaon
Hi Devjit,
Wow..lucky man i must say..to be given the flexibility to structure your own salary..
Please mail me your investments like life insurance..House loan if taken..mediclaim policies..etc to my official ID
and shall recommend the best options...
Regards,
Rajat
From India, Pune
Wow..lucky man i must say..to be given the flexibility to structure your own salary..
Please mail me your investments like life insurance..House loan if taken..mediclaim policies..etc to my official ID
Regards,
Rajat
From India, Pune
hi sudha,
thanx a lot for the info!!
can pl provide info on Minimum Basic Salary in northern states of india( Delhi, Uttaranchal especially)?
awaiting yr reply,
satish renikunta
From India, Hyderabad
thanx a lot for the info!!
can pl provide info on Minimum Basic Salary in northern states of india( Delhi, Uttaranchal especially)?
awaiting yr reply,
satish renikunta
From India, Hyderabad
Dear Anthony P,
its great to be in Cite HR as a member where we can have a word with seniors like you. Mr Anthony i do have an query of Gratuity:
1) In our company Gratuity in (D-Retirement) is been included in our Monthly Package. my monthly gross is been divided into A-Monthly B-Quaterly C-Annum & D-Retirement Benf (PF + Gratuity+Super Annu.).
Ex: Monthly Gross = 18000 (Divided to 4 category as above)
that mean's my Retirement Benef. Is been included in my gross package.
my query his if am paying my Gratuity from my own monthly gross, so why i should get the same amt which i am paying after 5 yrs only, & if i am leaving the organization before 5 yrs (3yrs) is that i am not eligible for the same to get the amount for that 3yrs.
2) if company is paying the same excluding my monthly gross i hope than we are not eligible for the same, as this amt we will get after completing 5 yrs as per Gratuity act.
can you help me out to understand the Gratuity ACT. or is there any way to take the same from the company.
Regards,
Anthony M.
From India, Thana
its great to be in Cite HR as a member where we can have a word with seniors like you. Mr Anthony i do have an query of Gratuity:
1) In our company Gratuity in (D-Retirement) is been included in our Monthly Package. my monthly gross is been divided into A-Monthly B-Quaterly C-Annum & D-Retirement Benf (PF + Gratuity+Super Annu.).
Ex: Monthly Gross = 18000 (Divided to 4 category as above)
that mean's my Retirement Benef. Is been included in my gross package.
my query his if am paying my Gratuity from my own monthly gross, so why i should get the same amt which i am paying after 5 yrs only, & if i am leaving the organization before 5 yrs (3yrs) is that i am not eligible for the same to get the amount for that 3yrs.
2) if company is paying the same excluding my monthly gross i hope than we are not eligible for the same, as this amt we will get after completing 5 yrs as per Gratuity act.
can you help me out to understand the Gratuity ACT. or is there any way to take the same from the company.
Regards,
Anthony M.
From India, Thana
you could either take it it as whatever the amt a company spend for thee benefit of an employee...u should count every penny spent(in terms of CTC that has to calculated for internal uses) and hile calculating in terms of a salary just exclude the gifts,bonuses sales incentivesetc.
PLZ CORRECT ME SENIORS IF M WRONG...
From India, New Delhi
PLZ CORRECT ME SENIORS IF M WRONG...
From India, New Delhi
Hi,
My understanding from this discussion is that gratuity is a reward payable on completion of 5 yrs, and that if it is shown to an employee as part of his CTC, it has to be paid even if he does not complete 5 yrs.
If a company includes Gratuity in the CTC package but refuses to pay the amount set aside as Gratuity because the employee has not completed the full 5 yrs, how can we compel the co to pay up?
Regards,
Sree
From India, Madras
My understanding from this discussion is that gratuity is a reward payable on completion of 5 yrs, and that if it is shown to an employee as part of his CTC, it has to be paid even if he does not complete 5 yrs.
If a company includes Gratuity in the CTC package but refuses to pay the amount set aside as Gratuity because the employee has not completed the full 5 yrs, how can we compel the co to pay up?
Regards,
Sree
From India, Madras
Hi
Gratuity can not be taken as part of CTC.... unless it is paid by the Company whenever the employee leaves the Company. Otherwise, it shall be paid only on completion of continuous service of 5 years with the Company. So the either the Company or the individual employee are not sure of the continuity of service.
Some of the companies show Gratuity as part of CTC but it is not a fair practice.
Thanks
Suresh
From India, Hyderabad
Gratuity can not be taken as part of CTC.... unless it is paid by the Company whenever the employee leaves the Company. Otherwise, it shall be paid only on completion of continuous service of 5 years with the Company. So the either the Company or the individual employee are not sure of the continuity of service.
Some of the companies show Gratuity as part of CTC but it is not a fair practice.
Thanks
Suresh
From India, Hyderabad
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