Dear Team, Looking for Suggestions
If the gratuity amount has been deducted from the employee CTC break-up, he is liable to pay interest for the gratuity amount, whenever he wants to withdraw/resigns/retires from the company
If he is liable to pay interest for the gratuity amount, what is the rate of interest & calculation?
From India, Hyderabad
2If the gratuity amount has been deducted from the employee CTC break-up, he is liable to pay interest for the gratuity amount, whenever he wants to withdraw/resigns/retires from the company
If he is liable to pay interest for the gratuity amount, what is the rate of interest & calculation?
From India, Hyderabad
No amount is deducted from the salary of any employee by any employer. If the employer has shown the amount payable by way of gratuity in the CTC statement, it is the wrong interpretation of the employee and not a fault of the employer. Can you find gratuity as deduction in your payslips? No, you cannot find it.
Now coming to the next part of the question. Gratuity becomes payable only when the employee leaves the company and that also after 5 years of service. In the case of death, however, this 5 years service does not apply. The amount is payable within 30 days of his leaving. If you fail to pay within 30 days, then the employer is legally bound to pay interest as fixed by the appropriate government.
From India, Kannur
Now coming to the next part of the question. Gratuity becomes payable only when the employee leaves the company and that also after 5 years of service. In the case of death, however, this 5 years service does not apply. The amount is payable within 30 days of his leaving. If you fail to pay within 30 days, then the employer is legally bound to pay interest as fixed by the appropriate government.
From India, Kannur
I think this misconception is prevalent in many HR youngsters. First of all they should understand what is meant by CTC and when the description of components applicable.
CTC is only an indicative term that what is the cost of an employee to organization and does not mean all the components are to be paid immediately or employee is entitled for the same without fulfilling the prescribed conditions. The CTC concept is only to provide an idea for both employee and employer. Like Gratuity, EPF Employer contribution also will be shown in CTC, will it be shown any where in employee pay slips or so. Likewise variable benefits, LTA, ESI etc.
From India, Hyderabad
CTC is only an indicative term that what is the cost of an employee to organization and does not mean all the components are to be paid immediately or employee is entitled for the same without fulfilling the prescribed conditions. The CTC concept is only to provide an idea for both employee and employer. Like Gratuity, EPF Employer contribution also will be shown in CTC, will it be shown any where in employee pay slips or so. Likewise variable benefits, LTA, ESI etc.
From India, Hyderabad
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Advance can be deducted from gratuity if agreed by employee - Kolkatta HC 29.11.2012.pdf
Security Amount Proof.docx