Gratuity
devineali
(Querist) 09 March 2013
This query is : Resolved
Hello!
Sir, My Name is FAISAL from LUCKNOW UP and Working at Same in Construction Company.
i have an issue to clarfy-
Dose Gratuity deducted from employee salary and its part of CTC. does any rule exists .....
I asked from my HR. he said its new rule ... or order for UP
Please tell me it can be .... or tell me any point that can cover this (duduction of gratuity from salary).
Kirti Kar Tripathi
(Expert) 09 March 2013
No, gratuity is the terminal benefits payable to an employee on account of completing a particular period in the establishment. To pay gratuity is the responsibility of the employer. No deduction can be made from salary /wages of employee on account of gratuity. In case, any such amount is deducted, the same will amount illegal deduction under the provisions of payment of wages Act
Kuummaar AS
(Expert) 10 March 2013
In fact companies are showing smartness. They do not show deduction of gratuity amount from salary. What they do is that they decide the total yearly amount to be paid to the employee as CTC and then divide that amount in different headings one of which is gratuity, ofcourse , keeping view the provisions of Minimum Wages Act, P.F. Act etc.
Kirti Kar Tripathi
(Expert) 10 March 2013
you can ask the details of deductions, if they do not reply or give evasive reply, file claim under section 15(2) claiming such deduction as illegal deduction
Kuummaar AS
(Expert) 10 March 2013
On what basis you are sure that they are deducting amount in the name of gratuity. Please provide your salary details as shown in your terms of appointment or in your salary slip.
Raj Kumar Makkad
(Expert) 12 March 2013
The opinion of HR of your department is mischievousness and you can very well challenge their decision under section 25 of Payment of Wages Act before local Labour-cum-Conciliation Officer.
