Warning: preg_match(): Unknown modifier 't' in [path]/showthread.php on line 2297

Warning: preg_match(): Unknown modifier 't' in [path]/showthread.php on line 2298

Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381

Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381

Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381
Gratuity as one of the CTC component - claim after contract for a period of 3 years? - CiteHR

No Tags Found!

SH

Shai89308

Executive Hr

AS

Ammu Shanvi

Human Resource

GS

G SHASHI KRISHNA

Senior Manager - Hr

AH

Aizant HR

Human Resources

MA

MARSHAL

Safety Officer

AK

Anish Katoch

Hr Executive

PR

PranjalR

Hr Recruiter

AP

Alka Pal

Hr Executive

Karthikeyan8195

Management Consultant

MK

Mohit Kumar Puri

Head Marketing

AU

Austex

Accounts Manager


absistla9@gmail.com
If a company hires an employee on contract for a period of 3 years and shows gratuity as one of the CTC component and later when the contract is closed / terminated does the employee gets the gratuity? If not then where does the amount kept aside as gratuity has gone ? Does the employee has the right to claim that as it was indicated in his CTC before joining
From India, Hyderabad
umakanthan53
5967

The issue of CTC has already been discussed in this forum several times and the questioner may go through them to understand the concept of CTC and its impact on the actual earnings of the employees.
CTC or Cost To the Company is the total annual expenses incurred by the company per employee. In other words, it is the gross salary actually payable plus the value of benefits. The benefits normally comprises of statutory contributions payable by the employer in respect of the employee to EPF,ESI,Gratuity Fund etc., and non-statutory contributions like Personal and Family Health Insurance premia or the value of medical reimbursements as the case be, statutory bonus,surrender leave salary, canteen subsidies and the like. In fact, it is only a trick or allurement to attract employees for the reason that apart from the actual salary and other periodical statutory payments, the employee would get each and every benefit shown in the CTC only when the occasion for it arises subject to his eligibility for that benefit.
Making annual provision for Gratuity on actuarial basis is, if I remember correct, is the obligation of the employer as per Accounting Standards[ AS 16]. Hence mention in the CTC. The employee can claim gratuity only on his fulfillment of the eligibility conditions. Just because it is mentioned in the CTC, he can not claim it when his contract of employment gets terminated on completion of three years.One should remember that CTC is a mere statement of projected cost per employee and not part of the contract of employment.

From India, Salem
absistla9@gmail.com
I am satisfied with your reply. Thanks a lot Sir
From India, Hyderabad
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.




About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.