Switching job, need help

dhinchakrohit wrote:

Hi guys,

I am currently negotiating on CTC with a company where I have got job offer.

They aren’t considering Gratuity part in my current CTC because the amount isn’t mentioned in increment letter. Just mentioned that Gratuity will be paid as per company policy.

Any way to convince them or any legal Act which I can show them?

I am eligible for gratuity in current organization.

Gratuity is 4.81% of Basic as per Payment of Gratuity act. Add it up on current CTC and share ahead for negotiations.

Other way around - If they have gratuity figures in their offered CTC Structure, then for apple to apple comparison deduct that amount from the offered CTC and calculate percentage hike on current.
 

Gratuity calculation should not be part of CTC anyways. It’s just a gimmick made by oversmart HRs to fool employees

gratuity is a government act

company has to pay if you serve 3 years and above, doesn’t matter if it is a part of ctc or not

karanoshan wrote:

gratuity is a government act

company has to pay if you serve 3 years and above, doesn’t matter if it is a part of ctc or not

Min is 5 years

no , now back to picking peanuts

GoogleCA wrote:

Gratuity calculation should not be part of CTC anyways. It’s just a gimmick made by oversmart HRs to fool employees

I don’t agree with your statement.

Gratuity is an integral part of one’s compensation and is payable by law in case any employee has over 5 years of continuous service at the time of leaving/ separating.

InvestPotato wrote:

Min is 5 years

To be exact, it is 4 Years and 240 days (5 Years of continuous service) 

abhispree wrote:

I don’t agree with your statement.

Gratuity is an integral part of one’s compensation and is payable by law in case any employee has over 5 years of continuous service at the time of leaving/ separating.

CTC is annual and gratuity is payable after 5 years. How’s that a cost to the company if i don’t stay with them for 5 years? It can be a cost to the company if i stay with them for 5 years i.e. it’s all hypothetical. Hypothetical costs should not be part of CTC as per my understanding.

there is no legal defination for CTC. so if company says that they are spending X amount of money to train an employee then thar can also be added in CTC.
@GoogleCA @abhispree

akki.akki wrote:

there is no legal defination for CTC. so if company says that they are spending X amount of money to train an employee then thar can also be added in CTC.
@GoogleCA @abhispree

I do agree.

Who knows what your Basic Salary will be at the time of leaving the company, which will be the parameter to calculate your gratuity? Hence, it’s not added as part of CTC.