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Hi
Gratuity is a statutory right of employee whoever completes 5 years in the same organization, and is a terminal benefit. The cost is to be born by employer and not employee.
Of late the concept of adding Gratuity in CTC ( Companies having tie up with LIC under Group Gratuity Scheme - whatever premium payable to LIC is divided by 12 and it is added to CTC) has become very common to make the CTC more lucrative. If the employee complete the minimum qualifying period of service as stipulated by the Act, for the purpose of Gratuity payment eligibility, then he will get the gratuity amount. In case of less service, Employer will not pay Gratuity in such scenario employee become loser as he will not be receiving what was shown in the CTC which is not right.
From India, Madras
Gratuity is a statutory right of employee whoever completes 5 years in the same organization, and is a terminal benefit. The cost is to be born by employer and not employee.
Of late the concept of adding Gratuity in CTC ( Companies having tie up with LIC under Group Gratuity Scheme - whatever premium payable to LIC is divided by 12 and it is added to CTC) has become very common to make the CTC more lucrative. If the employee complete the minimum qualifying period of service as stipulated by the Act, for the purpose of Gratuity payment eligibility, then he will get the gratuity amount. In case of less service, Employer will not pay Gratuity in such scenario employee become loser as he will not be receiving what was shown in the CTC which is not right.
From India, Madras
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