Hi,
I am happy to be a member of this site, please help me out how we can calculate CCA(City Compensatory Allowance) and what are the standard in major cities like Delhi, Bangalore, Chennai and Hyderabad.
Thanks,
Rajesh.
I am happy to be a member of this site, please help me out how we can calculate CCA(City Compensatory Allowance) and what are the standard in major cities like Delhi, Bangalore, Chennai and Hyderabad.
Thanks,
Rajesh.
hello all,
Gratuity is very much a part of the CTC and is deducted from the first salary of the employee. However, the ability to withdraw the gratuity amount is provided to the employee post completion of atleast 1 year of service with the organization. Post five years, it is the right of the employee to claim and / withdraw gratuity.
regards,
radhika
From India, Mumbai
3Gratuity is very much a part of the CTC and is deducted from the first salary of the employee. However, the ability to withdraw the gratuity amount is provided to the employee post completion of atleast 1 year of service with the organization. Post five years, it is the right of the employee to claim and / withdraw gratuity.
regards,
radhika
From India, Mumbai
Radhika,
I have never heard of deducting Gratuity amount from the first or any salary of an employee. It would be an offence under the Gratuity Act 1972 as applicable in India. Please check at your end from accounts or any other authority in your company on whose authorization it is happening.
Please stop this else serious consequences have to be faced upon having complaint from any source to the concerned govt. body.
Manoj
From India, Delhi
I have never heard of deducting Gratuity amount from the first or any salary of an employee. It would be an offence under the Gratuity Act 1972 as applicable in India. Please check at your end from accounts or any other authority in your company on whose authorization it is happening.
Please stop this else serious consequences have to be faced upon having complaint from any source to the concerned govt. body.
Manoj
From India, Delhi
Hi Manoj,
Fully agree with you that gratuity should not be the part of the CTC as suggested by my colleagues on this forum..
Would you please refer to us the relevant section under Gratuity Act which terms the deduction of gratuity amount from the salary as an offence.
Thank you for enlightening us on this..
Cheers,
Rajat
From India, Pune
Fully agree with you that gratuity should not be the part of the CTC as suggested by my colleagues on this forum..
Would you please refer to us the relevant section under Gratuity Act which terms the deduction of gratuity amount from the salary as an offence.
Thank you for enlightening us on this..
Cheers,
Rajat
From India, Pune
I am not saying that Grautity cannot be part of CTC but as you are saying that your company is deducting Gratuity amount form the first salary of the employees; I am giving clarification on this:
Section 7 of the Payment of Wages Act 1936 (PWA) permits deductions which can be made from wages and does not allow statutory deduction under the Payment of Gratuity Act (PG). A register is required to be made under the PWA to furnish the details of deductions other than mentioned under the above section. Section 20 of the act attracts penalty to contravene section 7 of the act. Better read with case laws, to have more understanding the law.
The preamble of Payment of the Gratuity Act itself is clear that it was enacted to introduce a scheme for payment of gratuity for certain industrial and commercial establishments as a measure of social security. The significance of this legislation lies in the acceptance of the principle of gratuity as a compulsory retrial benefit. (ref: Jeevan Lal Ltd. v. The Appellate Authority under the Payment of Gratuity Act.
The Act itself is Payment of Gratuity and not the Deduction of Gratuity. In nowhere in the act, it states of deductions and however, the word ‘payment’ has been used. No act fully describes to its executions principles and therefore, the appellate authorities and legislative courts have the jurisdiction to impinge into its interpretations.
“Gratuity” as observed by the Supreme Court in its etymological sense, means a gift, especially for services rendered or return for favours received. See AIR 1970 SC 919, Delhi Cloth & General Mills Co. Ltd. v. Its Workmen. The general principle underlying the gratuity scheme is that by their length of service, workmen entitled to claim a certain amount as a retrial benefit. See AIR 1960 SC 251, Indian Hume Pipe Co. Ltd. v. ts Workmen. Gratuity has to be considered to be an amount paid unconnected with any consideration and not resting upon it and has to be considered something given freely or without recompense. It does not have foundation on nay legal liability, but upon a bounty steaming from appreciation and graciousness. Long service carries with it expectation of an appreciation from the employer and a gracious financial assistance to tide over post retrial difficulties.
Section 4(1) incorporates the concept of gratuity being a reward for long, continuous and meritorious services. It creates right infavour of an employee and at the same time creates an obligation upon a employer. (Jeevan Lal Ltd. v. The Appellate Authority under the Payment of Gratuity Act. Therefore it is a claim arising on his superannuation, retirement, resignation, on death, and disablement due to accident or disease and not by deduction from his own salary.
Section 8 if the act prescribes about the recovery of the gratuity and section 9 about the penalty. It is a punishable offence with an imprisonment.
I hope you are aware of the amendments incorporated till date in various sections of the Gratuity Act 1972. Please contact your co’s lawyer for clarity; else be ready to face consequences in case of any complaint under the act or any statute inspections.
Cheers
Manoj
[/code]
From India, Delhi
Section 7 of the Payment of Wages Act 1936 (PWA) permits deductions which can be made from wages and does not allow statutory deduction under the Payment of Gratuity Act (PG). A register is required to be made under the PWA to furnish the details of deductions other than mentioned under the above section. Section 20 of the act attracts penalty to contravene section 7 of the act. Better read with case laws, to have more understanding the law.
The preamble of Payment of the Gratuity Act itself is clear that it was enacted to introduce a scheme for payment of gratuity for certain industrial and commercial establishments as a measure of social security. The significance of this legislation lies in the acceptance of the principle of gratuity as a compulsory retrial benefit. (ref: Jeevan Lal Ltd. v. The Appellate Authority under the Payment of Gratuity Act.
The Act itself is Payment of Gratuity and not the Deduction of Gratuity. In nowhere in the act, it states of deductions and however, the word ‘payment’ has been used. No act fully describes to its executions principles and therefore, the appellate authorities and legislative courts have the jurisdiction to impinge into its interpretations.
“Gratuity” as observed by the Supreme Court in its etymological sense, means a gift, especially for services rendered or return for favours received. See AIR 1970 SC 919, Delhi Cloth & General Mills Co. Ltd. v. Its Workmen. The general principle underlying the gratuity scheme is that by their length of service, workmen entitled to claim a certain amount as a retrial benefit. See AIR 1960 SC 251, Indian Hume Pipe Co. Ltd. v. ts Workmen. Gratuity has to be considered to be an amount paid unconnected with any consideration and not resting upon it and has to be considered something given freely or without recompense. It does not have foundation on nay legal liability, but upon a bounty steaming from appreciation and graciousness. Long service carries with it expectation of an appreciation from the employer and a gracious financial assistance to tide over post retrial difficulties.
Section 4(1) incorporates the concept of gratuity being a reward for long, continuous and meritorious services. It creates right infavour of an employee and at the same time creates an obligation upon a employer. (Jeevan Lal Ltd. v. The Appellate Authority under the Payment of Gratuity Act. Therefore it is a claim arising on his superannuation, retirement, resignation, on death, and disablement due to accident or disease and not by deduction from his own salary.
Section 8 if the act prescribes about the recovery of the gratuity and section 9 about the penalty. It is a punishable offence with an imprisonment.
I hope you are aware of the amendments incorporated till date in various sections of the Gratuity Act 1972. Please contact your co’s lawyer for clarity; else be ready to face consequences in case of any complaint under the act or any statute inspections.
Cheers
Manoj
[/code]
From India, Delhi
Hi Friends, Can you all please clarify my doubt about "GRATUITY" should we add it or not while calculating CTC. Cheers, Aishu.
From India, Bangalore
From India, Bangalore
Hi
CTC!!--the misnomer!
The term cost to company has come to be used in common parlance when we talk about a pay packet.This hitherto was considered as what one would get in his 'pay cover' .Be it cash or cheque.Attached to this was the 'pay slip'giving details of rate of wages[basic+Da+othercomponents}with deductions such as EPF/ESI/LIC/LOANS/ADVANCES/PT.This was calculated on the number of days worked in that calender month.{This was provided as a fromat under the minimum wages act ]
During the last decade the trend changed.The cost per employee i.e the total expenses direct and indirect that a company would incur for retaining the employee was calculated.This included salary,Employers contribution on EPF,ESI,Gratuity,excess leave allowed other than the statutory allowed,Bonus in excess of the statutory etc and the final figure
shown/offered as "CTC" to the employee.
The visibility of the employers share was made prominent.This Exercise is not understood by many as the basic thought lingering on the mind "MONEY IN THE COVER'--the difference in the payment received from his /her previous employer might be marginal or in some cases less...so the feeling of 'BEING CHEATED' arose and the PR exercise for the HR began.
Most employers to get over this area of anomoly have given the details more LUCIDLY with workings and exact take home amount.The adding of the EMPLOYERS SHARE is shown clearly and how it is disbursed-monthly/Quarterly'annually.
It is always cheerful to remember this offer document is doing THE PUBLIC RELATIONS for your company.The letter is being looked by many and the peer talk should not send the wrong signals about the company!!!
hrg-rajaram
p.s. I had given this view for another posting and on the same thread here am reproducing this for relevance here.
From United States
CTC!!--the misnomer!
The term cost to company has come to be used in common parlance when we talk about a pay packet.This hitherto was considered as what one would get in his 'pay cover' .Be it cash or cheque.Attached to this was the 'pay slip'giving details of rate of wages[basic+Da+othercomponents}with deductions such as EPF/ESI/LIC/LOANS/ADVANCES/PT.This was calculated on the number of days worked in that calender month.{This was provided as a fromat under the minimum wages act ]
During the last decade the trend changed.The cost per employee i.e the total expenses direct and indirect that a company would incur for retaining the employee was calculated.This included salary,Employers contribution on EPF,ESI,Gratuity,excess leave allowed other than the statutory allowed,Bonus in excess of the statutory etc and the final figure
shown/offered as "CTC" to the employee.
The visibility of the employers share was made prominent.This Exercise is not understood by many as the basic thought lingering on the mind "MONEY IN THE COVER'--the difference in the payment received from his /her previous employer might be marginal or in some cases less...so the feeling of 'BEING CHEATED' arose and the PR exercise for the HR began.
Most employers to get over this area of anomoly have given the details more LUCIDLY with workings and exact take home amount.The adding of the EMPLOYERS SHARE is shown clearly and how it is disbursed-monthly/Quarterly'annually.
It is always cheerful to remember this offer document is doing THE PUBLIC RELATIONS for your company.The letter is being looked by many and the peer talk should not send the wrong signals about the company!!!
hrg-rajaram
p.s. I had given this view for another posting and on the same thread here am reproducing this for relevance here.
From United States
Hi Aishu, Gratuity is not part of CTC as it is not being deducted from employees salary. It is a reward given by the company to the employee for their long association with the co. Regards, Sreekanth
From United States
From United States
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