Gratuity
This query is : Resolved
12 March 2012
Dear Sir,
Is that right on part of employer to deduct part of gratuity from my CTC as this amount is not payable to me until I complete 5 yrs of service?
Secondly, If I'm leaving before 5 yrs should that amount deducted as gratuity be paid to me as a part of full & final settlement.
if it is not paid to employee who has worked less than 5yrs how can it be called cost to comapany.
Is that right on part of employer to deduct part of gratuity from my CTC as this amount is not payable to me until I complete 5 yrs of service?
Secondly, If I'm leaving before 5 yrs should that amount deducted as gratuity be paid to me as a part of full & final settlement.
if it is not paid to employee who has worked less than 5yrs how can it be called cost to comapany.
12 March 2012
Dear Mr. harcharan,
it is normal practice of employer to consider the Gratuity provision of employee in the CTC Calculation.
If any employee left before completion of 5 years then he is not entitled to get the gratuity.
The question of deduction of Gratuity does not arrise as it is never paid to employee only the thing is that though it appears in the engagement terms of the employee but employer doesn't pay it before completion of 5 years.
it is normal practice of employer to consider the Gratuity provision of employee in the CTC Calculation.
If any employee left before completion of 5 years then he is not entitled to get the gratuity.
The question of deduction of Gratuity does not arrise as it is never paid to employee only the thing is that though it appears in the engagement terms of the employee but employer doesn't pay it before completion of 5 years.
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