My previous employer showed gratuity in my CTC and they deducted the same on a monthly basis for approximately 4 years. Can I claim my gratuity as part of my CTC? Request to help me out on this.
From India, Bengaluru
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1From India, Bengaluru
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Even though Gratuity is shown to be a part of CTC, you can not claim it till you complete 5 years of continuous service in the organization.
From India, Delhi
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From India, Delhi
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One needs to understand that the term CTC is a cosmetic figure used to present the company in a better position to employees than it actually is. It stands for Cost to the Company and should not be equated with the Gross Salary of the employee. Only when it is shown under the term Gross Salary can you challenge the employer; otherwise, no.
As far as the Payment of Gratuity Act, 1972 is concerned, it is quite clear that one must complete a full 5 years to stake a claim for gratuity, as rightly pointed out.
Thanks and Regards
From India, Hyderabad
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As far as the Payment of Gratuity Act, 1972 is concerned, it is quite clear that one must complete a full 5 years to stake a claim for gratuity, as rightly pointed out.
Thanks and Regards
From India, Hyderabad
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OK but if Company deducted amount as "Gratuity" from Gross Salary then?
From India, Ahmadabad
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From India, Ahmadabad
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Understanding Cost to Company (CTC)
Cost to company (CTC) is a term for the total salary package of an employee. It indicates the total amount of expenses an employer (organization) spends on an employee during one year. It is calculated by adding the salary to the cost of all additional benefits an employee receives during the service period.
Gratuity and Its Claim Conditions
So, understood salary is a part of CTC, and additional benefits will be the investment from the employer. Gratuity is contributed by the employer either through an insurance policy or a gratuity fund, but an employee can only claim it after completion of 5 years of service, not on 1-2-3-4 years.
Thanks & regards
From India, Ghaziabad
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Cost to company (CTC) is a term for the total salary package of an employee. It indicates the total amount of expenses an employer (organization) spends on an employee during one year. It is calculated by adding the salary to the cost of all additional benefits an employee receives during the service period.
Gratuity and Its Claim Conditions
So, understood salary is a part of CTC, and additional benefits will be the investment from the employer. Gratuity is contributed by the employer either through an insurance policy or a gratuity fund, but an employee can only claim it after completion of 5 years of service, not on 1-2-3-4 years.
Thanks & regards
From India, Ghaziabad
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