Should gratuity be made a part of ctc??
This query is : Resolved
shubham agrawal
(Querist)
23 May 2018
Hi Experts,
I am working in a MNC at Pune. My employer is showing 4.81% of my basic salary as contribution to gratuity.
I want to know is it a right practice?
Because gratuity is employers responsibility and they are showing it in CTC just to make the CTC more attractive.
Although that amount is no use for me if I left the company before 5 years.
Please let me know if it is legal/allowed by law.
If not, can I approach the HR and request them to make necessary changes to my CTC structure by excluding gratuity??
I am working in a MNC at Pune. My employer is showing 4.81% of my basic salary as contribution to gratuity.
I want to know is it a right practice?
Because gratuity is employers responsibility and they are showing it in CTC just to make the CTC more attractive.
Although that amount is no use for me if I left the company before 5 years.
Please let me know if it is legal/allowed by law.
If not, can I approach the HR and request them to make necessary changes to my CTC structure by excluding gratuity??
CA R SEETHARAMAN
(Expert)
23 May 2018
Yes it is legal/allowed by law to show gratuity in CTC. That is the practice followed by all the companies accept it.
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shubham agrawal
(Querist)
28 May 2018
Thanks a lot sir for you advice.
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