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Gratuity is included in ctc

(Querist) 31 October 2015 This query is : Resolved 
Dear All,

Myself Prakash, I served for 3 yrs. 8 Months in MNC company, In my last increment letter Gratuity amount is included in my CTC and NOT mentioned about the service of 5 yrs.(240 Days) as per Gratuity ACT, Now my employer is denying to pay my part of contribution for Gratuity in F&F. Please help and advice.

Regards, Prakash
Anirudh (Expert) 31 October 2015
Unless you had rendered 5 years service you are not entitled to gratuity.

CTC means cost to the company. It is not take home pay of the employee. Non-mentioning the condition of 5 year service in the increment letter will not make you eligible, as gratuity is payable as per Gratuity Act.
Kumar Doab (Expert) 31 October 2015
There are many threads at LCI and various other forums on similar query.There are posts by employees affirming that they succeeded to get Gratuity if mentioned in CTC.


It is unethical practice to mention Gratuity in CTC sheet annexed to employee.


Your counsels in employee's/trade unions, Labor Law Consultant may opine that CTC is annual pay package and promised amount.



Gratuity can be paid by sweet will of employer also.


Apply your skills and if required lean on your counsels and sustain and persist.Like others you may also succeed.
Rajendra K Goyal (Expert) 31 October 2015
You are not entitled for gratuity till you complete service required by statutory period.

Item in CTC can be for Balance sheet and tax purpose.
Kumar Doab (Expert) 03 November 2015
Don't give up without trying.



CTC is negotiated settlement/fruit of labor/promised amounts.


There are opinions that employee may approach Civil Suit for recovery, authority under Payment of wages Act etc.


There era companies those pay Gratuity even if employee leaves before 5 years.

There era many threads that you may pursue e.g;


http://www.lawyersclubindia.com/search_results_custom.asp?dir=experts&q=Gratuity+in+CTC&B1=GO#.Vjdwp25-jMo

http://www.lawyersclubindia.com/search_results_custom.asp?dir=forum&q=Gratuity+in+CTC&B1=GO#.Vjjb-m5-jMo


http://www.lawyersclubindia.com/experts/payment-of-gratuity-100431.asp#.VjjaR25-jMo


http://www.lawyersclubindia.com/experts/ex-gratia-gratuty-553381.asp#.Vjjbcm5-jMo

http://www.lawyersclubindia.com/experts/ex-gratia-gratuty-553381.asp#.Vjjbcm5-jMo

http://www.lawyersclubindia.com/forum/Gratuity-is-a-part-of-the-ctc--55344.asp#.VjjcGm5-jMo

http://www.lawyersclubindia.com/forum/Gratuity-is-deducted-as-part-of-annual-component-ctc-89335.asp#.Vjjcdm5-jMo

http://www.lawyersclubindia.com/forum/Payment-of-gratuity-ex-gratia-when-worked-for-less-than-5-yr-121636.asp#.VjjeCm5-jMo

https://www.google.co.in/?gws_rd=ssl#q=Civil+suit+for+recovery+of+Gratuity+shown+in+CTC

http://www.lawyersclubindia.com/forum/Gratuity-120526.asp#.VjjfB25-jMo


http://www.lawyersclubindia.com/experts/Query-regarding-pf-and-gratuity-deductions-338461.asp

http://www.lawyersclubindia.com/experts/Gratuity-394176.asp#.Vjdw9W5-jMo
http://www.lawyersclubindia.com/experts/Gratuity-not-received-503951.asp#.Vjdw_W5-jMo

http://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.VE0UrCKUcb8


e.g;

http://www.lawyersclubindia.com/forum/Gratuity-deducting-from-ctc--67037.asp#.VE0TGCKUcb8

http://www.lawyersclubindia.com/experts/employer-contribution-PF-502816.asp

http://www.lawyersclubindia.com/experts/Gratuity-not-received-503951.asp#.Vjdw_W5-jMo

http://www.lawyersclubindia.com/experts/Gratuity-382176.asp#.VjjaWW5-jMo

http://www.lawyersclubindia.com/experts/payment-of-gratuity-100431.asp#.VjjaR25-jMo

http://www.lawyersclubindia.com/forum/Outsourcing-and-gratuity-eligibility-amp-payment-49945.asp#.Vjjc725-jMo

http://www.lawyersclubindia.com/forum/Gratuity-deducting-from-ctc--67037.asp#.Vjjdpm5-jMo

http://www.citehr.com/265416-gratuity-doc-download-completion-service-period.html


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