Gratuity is deducted as part of annual component ctc

Employer has to tender full payment for Gratuity from its own resource.

If employer has obtained an insurance from approved FI or LIC employer has to make full contribution.

Employee does not have to make any contribution.

Please advise me on this. What can i do further?

File an application under the payment of gratuity act before the Appropriate labour court and pray for the gratuity as applicable to you. Further for such illegal practice of company address a letter to the labour commissioner for necessary and immediate action.

Regards

You have posted that:

“Hi, I am working in Pvt Software concern (CMM level 5 company).’

This implies that you are still working with the company.

There are threads to indicate that if Gratuity Contribution was inserted in CTC sheet issued to employee those employees succeeded to obtain Payment of gratuity even if they reigned/separated before 5Y.

If you agitate now there are chances that employer may remove the gratuity component from CTC citing error pointed out by you and may not increase any other component proportionately.

You may discuss the matter with your union and lawyer and proceed as deemed fit at your end.

Thanks hiral and kumar for your valuable reply. I will ask my HR regarding this and update the same to you.

Hi Kumar and Hiral,

Please find the reply from my company regarding Gratuity and PF. "The CTC is known as Cost to Company, which has all the details that what is the exact cost for that company will have to consider to determine the employment of an employee. The CTC in itself includes in-hand salary, PF contribution, Gratuity and Medical. These are the component which company is spending towards employment of an employee. Hence you can clearly yourself determine from your Salary Annexure that your in-hand salary is different from your CTC. As the facilities like PF contribution, Gratuity and Medical are getting provided to an employee by the company hence this is a Cost to Company. We hope this resolution will suffice your requirement".

Please advise.

You have posted that:

-----“As the facilities like PF contribution, Gratuity …………………… are getting provided to an employee by the company”

These are not facilities but these statutory requirements and obligations on company which company has to fulfill without any cost to employee.

HR or for that matter even employer has to fulfill it like the company pay fee of various licenses/registrations…………………….

The company may love to include the various costs in its CTC of employees as employees enter its premises to work and earn wages…………………………….

HR may think the employees walk in office and make the floor dirty, use washrooms and cost of sweeper, peon be divided and added in CTC…………………….

Company has to paint the office and what not……………………………..

Is it possible? Can it be permitted?

Company can add whatever it wants in excel sheet it maintains in its computers, pages it keeps in its ledgers…………………………….however it can not add the cost e.g Gratuity component in your case in annual/monthly, pay package/remuneration of employee described as CTC in appointment letter/contract of employment……………………………..

-------“ this is a Cost to Company. “ “The CTC is known as Cost to Company, which has all the details that what is the exact cost for that company will have to consider to determine the employment of an employee.”

Thus CTC: Cost to company would be everything/every cost company has to incur due to employee being in company……………………………………..

Attempt has been made to describe it………………

 Company is deducting an amount from annual pay package without even paying to employee. The employee shall be eligible for gratuity after 5Y so how can employer add cost of Gratuity to employee before 5Y?

There are many threads on Gratuity at LCI, including threads related to CTC you may go thru these…………………..

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

Many of the employees have succeeded with their own efforts by applying persuasion, persistence, reasoning skills…………………………………..

As per various publications at various portals including LCI many of the HR personnel even from IT/ITeS sector, CA’s  have concurred in affirmative in cases similar to you.

If you are not able to handle it on your own entrust it to your lawyer.

Sir,I am working with LIC as contractual employee and In my case also LIC is deducting Gratuity from monthly salary .and some of our collegues who left the organisation before 5 yrs have not been paid this gratuity amount deducted stating they are not eligible for Gratuity.

Can they get this amt through legal procedure?