Dear Seniors Now a days company making Gratuity as a part of CTC is correct ???
From India, Indore
Acknowledge(0)
Amend(0)
1From India, Indore
Acknowledge(0)Amend(0)
Gratuity as a Statutory Right
Gratuity is a statutory right of an employee who completes 5 years in the same organization and is a terminal benefit. The cost is to be borne by the employer and not the employee.
Gratuity in CTC
Of late, the concept of adding Gratuity in CTC (companies having tie-ups with LIC under Group Gratuity Scheme - whatever premium payable to LIC is divided by 12 and added to CTC) has become very common to make the CTC more lucrative. If the employee completes the minimum qualifying period of service as stipulated by the Act for the purpose of Gratuity payment eligibility, then they will receive the gratuity amount. In case of less service, the employer will not pay Gratuity. In such a scenario, the employee becomes a loser as they will not receive what was shown in the CTC, which is not right.
Thank you.
From India, Madras
Acknowledge(0)Amend(0)
Gratuity is a statutory right of an employee who completes 5 years in the same organization and is a terminal benefit. The cost is to be borne by the employer and not the employee.
Gratuity in CTC
Of late, the concept of adding Gratuity in CTC (companies having tie-ups with LIC under Group Gratuity Scheme - whatever premium payable to LIC is divided by 12 and added to CTC) has become very common to make the CTC more lucrative. If the employee completes the minimum qualifying period of service as stipulated by the Act for the purpose of Gratuity payment eligibility, then they will receive the gratuity amount. In case of less service, the employer will not pay Gratuity. In such a scenario, the employee becomes a loser as they will not receive what was shown in the CTC, which is not right.
Thank you.
From India, Madras
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Gratuity-Leave calculation on CTC-Rev..xls
Flexi Benefits Plan.doc
Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf