Gratuity & PF
This query is : Resolved
17 February 2010
One of our client want to include gratuity & PF in his salary structure.This is their 3 rd year of business.
Kindly advice
Kindly advice
17 February 2010
You can include Gratuity and PF in salary structure.
If you have any specific query, kindly me know.
If you have any specific query, kindly me know.
18 February 2010
Yes.Gratuity and PF most of the companies treating forming part of CTC
19 February 2010
What i wanted to know is How to incorporate PF & gratuity in the salary of employees?
19 February 2010
The CTC is a break up of various components of salary like basic salary, da, hra, lta, medical re-im, Company's contribution to pf, gratuity.
In this way structure the CTC.
In this way structure the CTC.
19 February 2010
I understand that.BUt, im asking how to find out whether the employeee is covered unde payment of gratuity act or not?
19 February 2010
Gratuity is to be payable by the Company only if the employee completes five years in the company. Once he completes five years, it becomes a liability of the company. But the company cannot provide the entire amount at the end of the fifth year. The fair practice is to either have a annual contribution towards the fund or make a provision in the books of accounts.
Irrespective of the fact whether the employee will complete five years with the company or not, the company is at liberty to include the gratuity portion in the CTC of the employee. This gratuity is not to be paid to the employee but is only shown in the CTC. This is to be paid only if the employee completes five years with the company and that too when he leaves the Company. If the employee leaves the company after ten years, then it is to be paid at that time.
If he leaves at the end of four years, the amount of gratuity that was shown under his CTC would be adjusted against the balance amount of provision to be made for other employees.
Irrespective of the fact whether the employee will complete five years with the company or not, the company is at liberty to include the gratuity portion in the CTC of the employee. This gratuity is not to be paid to the employee but is only shown in the CTC. This is to be paid only if the employee completes five years with the company and that too when he leaves the Company. If the employee leaves the company after ten years, then it is to be paid at that time.
If he leaves at the end of four years, the amount of gratuity that was shown under his CTC would be adjusted against the balance amount of provision to be made for other employees.
19 February 2010
Thanks sir...but could you tell me from where i can get this provisions from?
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