can gratuity be a part of ctc

Tilak Marg Forum for Legal Questions Forums Service and Labour Laws can gratuity be a part of ctc

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    • #4715
      thrishul
      Guest

      I was hired as a senior software engineer on contract basis for three months,although my ctc is 10 lakh on paper the net pay is 9.6 lakh & other 40 thousand they are telling it as part of gratuity.
      1)is it legal since i am on contract no way can i claim the gratuity amount
      2)They are giving me only 18 leaves per year although according to karnataka shop & establishment act they have to give 24 leaves
      How to approach the problem,numerous mails from me to the management hasn’t instilled any fear in them,they are telling company policy.

    • #4738

      Gratuity is paid by the employer to the employee in gratitude for the services offered by the employee in the company. Usually, it is not deducted from the salary, as far as I understand.

      As per Section 4 of the Payment of Gratuity Act, 1972, gratuity is generally paid to an employee on termination of his employment after he has rendered a continuous service of 5 years or more.

      However, you can check the terms of your employment and the pay package offered to you. There may perhaps be a clause to refund the amount deducted from you on completion of your contract period if it is specifically mentioned in the contract. It is also possible that the amount might have been wrongly described as gratuity and may be towards some other deduction, such as, for example, National Pension Scheme (NPS). Please ascertain from the terms of contract.

      I am not aware of the local laws applicable in Karnataka with regard to leave admissible to an employee and the conditions subject to which it is admissible. Please consult some local expert.

           


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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