Hi,
I am working for a company in UK for more than 8 years. We have an office in India as well running as subsidiary. UK company is a parent company.
I am looking to move to India for 2 years secondment initially and I would be paid salary in India from Indian payroll.
I am not resigning the UK parent company and there would be no break in my service with UK company during secondment.
I have two questions about gratuity.
1. If I come back to UK company after finishing 2 years of secondment, can the subsidiary in India still pay me the gratuity amount they would deduct from CTC?
2. Is it mandatory for subsidary in India to deduct gratuity from my salary in India?
From United Kingdom, Milton Keynes
I am working for a company in UK for more than 8 years. We have an office in India as well running as subsidiary. UK company is a parent company.
I am looking to move to India for 2 years secondment initially and I would be paid salary in India from Indian payroll.
I am not resigning the UK parent company and there would be no break in my service with UK company during secondment.
I have two questions about gratuity.
1. If I come back to UK company after finishing 2 years of secondment, can the subsidiary in India still pay me the gratuity amount they would deduct from CTC?
2. Is it mandatory for subsidary in India to deduct gratuity from my salary in India?
From United Kingdom, Milton Keynes
Gratuity is paid out of Gratitude for long term service in a company, it can not be deducted from the Salary/CTC.
From India, Ahmadabad
733From India, Ahmadabad
Gratuity is payable for working in the same company for a period of 5 years or more without a service break
So you will never be eligible for the same under Indian laws. You may be eligible under the British laws (which I am not conversant with)
Therefore your company including it in their CTC is wrong. Tell them to remove it.
Gratuity is not a contributory benefit. Te company is required to pay it out of its own funds and therefore it can not be deducted from salary (But ofcourse it can be included in CTC working, which has no statutory recognition)
From India, Mumbai
So you will never be eligible for the same under Indian laws. You may be eligible under the British laws (which I am not conversant with)
Therefore your company including it in their CTC is wrong. Tell them to remove it.
Gratuity is not a contributory benefit. Te company is required to pay it out of its own funds and therefore it can not be deducted from salary (But ofcourse it can be included in CTC working, which has no statutory recognition)
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc