Gratuity part of ctc
Rakesh Kaushik
(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.