Whether the gratuity amount, which would be paid by the company only after completion of five years can be included in the CTC? Pls brief the purpose of legislation while enacting this law.
From India, New Delhi
From India, New Delhi
My job period 4 years 10 month (i.e. from 01-10-2005 to 02-08-2010). I am eligible for gratuity or not.
From India, Delhi
From India, Delhi
Gratuity is an amount payable by the employer when an employee leaves after being in service for at least five years. The amount of gratuity is based on the salary of the employee at the time of his leaving. It will not happen as and when he completes five years but it becomes due only when he leaves, that means, it may happen after five years, seven years, ten years or even thirty years! Is it possible to calculate his gratuity which may become due after ten or twenty or thirty years from now?
Similarly, there is a provision in the Payment of Gratuity Act which says that gratuity can be forfeited if the employee is dismissed from service due to charges involving moral turpitude or it can be forfeited to the extend of damages made by the employee to the company etc. If in the future the employee is dismissed and the gratuity is forfeited then wouldn't the CTC be different.
Moreover, gratuity being an amount payable solely by the employer as a reward for long service should not be recovered from the employee in any manner. Therefore, gratuity amount should not be included in the CTC.
Regards,
Madhu.T.K
From India, Kannur
4249Similarly, there is a provision in the Payment of Gratuity Act which says that gratuity can be forfeited if the employee is dismissed from service due to charges involving moral turpitude or it can be forfeited to the extend of damages made by the employee to the company etc. If in the future the employee is dismissed and the gratuity is forfeited then wouldn't the CTC be different.
Moreover, gratuity being an amount payable solely by the employer as a reward for long service should not be recovered from the employee in any manner. Therefore, gratuity amount should not be included in the CTC.
Regards,
Madhu.T.K
From India, Kannur
In order to be eligible for gratuity, one should have completed five years of service with every year contributing at least to 240 days. Following a Madras High Court verdict an employee who has completed 240 days in the fifth year is also eligible for gratuity. However, the same need not be applicable in all the states.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
For Amitkudey,
Gratuity payment won't be included in CTC is the paid as per provision of Payment of Gratuity Act
Some cos may pay Gratuity by subscrbing to Insurance co, then it would included in CTC.
For Sachin Gupta
If you have served the company for 4 yrs 10 months continously & if your records are unblemished, you are eligible for Gratuity
From India, Tiruchchirappalli
Gratuity payment won't be included in CTC is the paid as per provision of Payment of Gratuity Act
Some cos may pay Gratuity by subscrbing to Insurance co, then it would included in CTC.
For Sachin Gupta
If you have served the company for 4 yrs 10 months continously & if your records are unblemished, you are eligible for Gratuity
From India, Tiruchchirappalli
Training period other than as apprentice under the Apprentice Act will be counted for gratuity.
Sachin,
To know whether 240 days in the fifth year can be counted as one year for the purpose of eligibility for Gratuity, you have to see whether any such ruling has taken place in UP. Any way, following the Payment of Gratuity Act, you are not eligible to get gratuity.
Regards,
Madhu.T.K
From India, Kannur
Sachin,
To know whether 240 days in the fifth year can be counted as one year for the purpose of eligibility for Gratuity, you have to see whether any such ruling has taken place in UP. Any way, following the Payment of Gratuity Act, you are not eligible to get gratuity.
Regards,
Madhu.T.K
From India, Kannur
dear amit what is the proof for "service in the company for 4 yrs 10 months continously & if your records are unblemished, you are eligible for Gratuity" which show for HR department.
From India, Delhi
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Case Law on Gratuity.doc