Could we take Gratuity as a part of CTC ? Very urgent awaiting for your valuable views. Thanks & Regards Bharat Mudgal mudgal.bharat87@gmail.com
From India, Delhi
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From India, Delhi
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Hi Bharat,
An employee should complete 5 years of service to be eligible for Gratuity. Mentioning Gratuity in your CTC before the 5-year period of service is not the right thing. However, some employers are considering it as part of CTC, which is not a fair practice.
In the fifth year, you could include the component using the following calculation to cover the Cost to the company: Gratuity = Current basic X 15 X 5 / 26, wherein 5 is the number of years worked.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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28An employee should complete 5 years of service to be eligible for Gratuity. Mentioning Gratuity in your CTC before the 5-year period of service is not the right thing. However, some employers are considering it as part of CTC, which is not a fair practice.
In the fifth year, you could include the component using the following calculation to cover the Cost to the company: Gratuity = Current basic X 15 X 5 / 26, wherein 5 is the number of years worked.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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Dear Bharat,
Kindly refer to the links below. This might solve your problem.
https://www.citehr.com/439970-gratuity-payment.html
https://www.citehr.com/435363-payment-gratuity.html
From India, Ahmedabad
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Kindly refer to the links below. This might solve your problem.
https://www.citehr.com/439970-gratuity-payment.html
https://www.citehr.com/435363-payment-gratuity.html
From India, Ahmedabad
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Gratuity-Leave calculation on CTC-Rev..xls
Gratuity calculation.doc