LCI Learning
Master the Art of Contract Drafting & Corporate Legal Work with Adv Navodit Mehra. Register Now!

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Gratuity part of ctc

(Querist) 29 December 2012 This query is : Resolved 
Dear Respected all,

Kindly advice me on Gratuity.

My company make CTC.and in CTC deduct Gratuity amount and says if any employee work 5 yeras then company paid Gratuity amount.

Kindly advice me What Gratuity part of CTC?

Its Legal or not ?

Kindly advice.

Regards

Rakesh Kaushik
prabhakar singh (Expert) 29 December 2012
So far as my legal understanding goes on the topic,
actually, the gratuity is not a part of CTC. It is applicable only after completion of continuous 5 years service.

However, some employers are taking it as a part of CTC while bifurcating the salary structure, which is not at all a fair practice in my view.
Raj Kumar Makkad (Expert) 01 January 2013
Your employer is doing an illegal work. CTC do not contain gratuity. Gratuity is separate compensation to the employee solely paid by employer out of his own pocket after leaving by employee as per rules.


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :