Mr. Madhu,
Recently I came to know about a SC Ruling which states that :
An employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year
Now my question is that If you ever came across such thing, if yes than can you look out fpr the ruling.
From India, Delhi
76Recently I came to know about a SC Ruling which states that :
An employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year
Now my question is that If you ever came across such thing, if yes than can you look out fpr the ruling.
From India, Delhi
By including gratuity into the CTC by the employer, it does not become mandatorily payable by the employer, since he is doing an act which is not supported by the gratuity act. there fore is ultra vires to the act and can not be done.
saikat
9433144589
From India, Calcutta
saikat
9433144589
From India, Calcutta
Dear Madhu,
I have 2 question that is......
1. With whom is amount of gratutiy contributed by the employee kept / deposited with?
2. What is done with the amount of Gratuity accumulated(employee CTC contribution) in case of an employee who leaves the organistion before completion of 5 yrs.
----
Thanks & Regards,
Santu.
From India, Chinsurah
I have 2 question that is......
1. With whom is amount of gratutiy contributed by the employee kept / deposited with?
2. What is done with the amount of Gratuity accumulated(employee CTC contribution) in case of an employee who leaves the organistion before completion of 5 yrs.
----
Thanks & Regards,
Santu.
From India, Chinsurah
Dear Rajeev,
Gratuity is shown as a component in CTC designing.
However we do not deduct it from your salary.
I think you've understood the Gratuity and it's inclusion in CTC wrongly. There's a post below your post that explains why employers put Gratuity in CTC. Hope that clarifies the doubt.
Also understand that Gratuity is not allowance or bonus that we can split it and give it to employees on some occassion.
Gratuity is the amount given by the employer as a token of appreciation for the long tenure and service (min of 5 yrs)
Gratuity is not the matter of right (if you have not completed 5 years)
For more information same, read
<link no longer exists - removed>
From India, Mumbai
Gratuity is shown as a component in CTC designing.
However we do not deduct it from your salary.
I think you've understood the Gratuity and it's inclusion in CTC wrongly. There's a post below your post that explains why employers put Gratuity in CTC. Hope that clarifies the doubt.
Also understand that Gratuity is not allowance or bonus that we can split it and give it to employees on some occassion.
Gratuity is the amount given by the employer as a token of appreciation for the long tenure and service (min of 5 yrs)
Gratuity is not the matter of right (if you have not completed 5 years)
For more information same, read
<link no longer exists - removed>
From India, Mumbai
Since gratuity is a guaranteed payment if the employee leaves after 5 years, few companies deposit it with LIC or related firms.
Many other just have a different account managing their gratuity surplus.
If there are no claimants, the Gratuity surplus continues to grow in the company's kitty.
The contribution is made every year depending on the salary you draw in that year. But you'd be paid depending on the last drawn salary (which will be higher than the salary you once drew and hence contribution once made)
The surplus is used to adjust such addition.
The whole amount of the gratuity of non-claimants (employees who leave before tenure) is in the company's kitty (as far as my knowledge goes)
Hope this solved your query.
From India, Mumbai
Many other just have a different account managing their gratuity surplus.
If there are no claimants, the Gratuity surplus continues to grow in the company's kitty.
The contribution is made every year depending on the salary you draw in that year. But you'd be paid depending on the last drawn salary (which will be higher than the salary you once drew and hence contribution once made)
The surplus is used to adjust such addition.
The whole amount of the gratuity of non-claimants (employees who leave before tenure) is in the company's kitty (as far as my knowledge goes)
Hope this solved your query.
From India, Mumbai
Hi Bradon,
First of All, Gratuity is not contributory. It would be paid to those employees who have served the company atleast for 5 years. So there is no emplyees' contribution.
Secondly, most of the company keep the provision for the Gratuity that's why they are adding the Gratuity amount into CTC. Some of the company taken the policy for Gratuity from LIC or other Insurance companies and paying the annual premium, so they put the amount into CTC.
AMATYA
First of All, Gratuity is not contributory. It would be paid to those employees who have served the company atleast for 5 years. So there is no emplyees' contribution.
Secondly, most of the company keep the provision for the Gratuity that's why they are adding the Gratuity amount into CTC. Some of the company taken the policy for Gratuity from LIC or other Insurance companies and paying the annual premium, so they put the amount into CTC.
AMATYA
Hi Friends, What if employee dies after one year of service? Let me know in case of both, 1) Death on duty i.e due to some accident 2) Natural Death Regards Amith R.
From India, Bangalore
From India, Bangalore
Hi AMATYA,
Thanks for the clarification.
Also, if the company is showing it as part of CTC, does it mean that it will be considered for taxation purposes also like the other components? I don't think so,however, kindly clarify my doubt.
Regarding the query by Amitha, I think that it is payable even before the completion of 5 years in case of death (anyhow).
Regards,
Brandon.
From India, Calcutta
Thanks for the clarification.
Also, if the company is showing it as part of CTC, does it mean that it will be considered for taxation purposes also like the other components? I don't think so,however, kindly clarify my doubt.
Regarding the query by Amitha, I think that it is payable even before the completion of 5 years in case of death (anyhow).
Regards,
Brandon.
From India, Calcutta
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