Dear All,
As per Gratuity Act an employee should attain 5 yrs of service to get eligibility for Gratuity.
If Gratuity is stated as Indirect Benefit and shown as part of CTC on his appointment order, if the employee leaves the service in his 3rd year, whether he has the right to ask the management to pay the gratuity hence it is part of his CTC.
Prabu
From India, Tiruchchirappalli
6As per Gratuity Act an employee should attain 5 yrs of service to get eligibility for Gratuity.
If Gratuity is stated as Indirect Benefit and shown as part of CTC on his appointment order, if the employee leaves the service in his 3rd year, whether he has the right to ask the management to pay the gratuity hence it is part of his CTC.
Prabu
From India, Tiruchchirappalli
My answer to your query is yes, but generally most of companies denied for the same it is illegal,because if the gratuity is a part of CTC then it is obligatory for the company to pay the same.Companies take benifit of 5 years continuous serivice clause and retained lot of money from the salary of their employee's.
Dear Citehr mates,
I need to know about gratuity. In my company, it is deducted from CTC as per the same formula as put into basic*15/26*1year. But as per the gratuity act, it is written that gratuity is only calculated when an employees serves for 5 yrs. Kindly clarify.
From India, Pune
I need to know about gratuity. In my company, it is deducted from CTC as per the same formula as put into basic*15/26*1year. But as per the gratuity act, it is written that gratuity is only calculated when an employees serves for 5 yrs. Kindly clarify.
From India, Pune
and if it is not mandatory for the employer to pay the gratuity amount after completion of 2 yrs. then can we claim for this?
From India, Pune
From India, Pune
I understand that neither the company nor employee contributes towards gratuity, unlike the PF.
Why on earth the gratuity is included as part of CTC.
As I understand the gratuity is exclusive of the salary the employee receives because of having stayed in the company for more than 5 years.
This seems very unfair to the employees, please shed come light on this.
From India, Madras
Why on earth the gratuity is included as part of CTC.
As I understand the gratuity is exclusive of the salary the employee receives because of having stayed in the company for more than 5 years.
This seems very unfair to the employees, please shed come light on this.
From India, Madras
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Gratuity-Leave calculation on CTC-Rev..xls