insurance terms and concepts
The gratuity as part of CTC or not?
Hello, Thanks for your feedback. Small clarification. In the IT industry is a new concept called "CTC" cost to the company, which is not exactly like the term "wage" in industry or services public. In CTC most IT companies (mostly utilities) includes PF (both sides contributed), gratuity, Medical Insurance, Annual Health Check-up, Snack Food Bill, etc. So in a way, what ever the company of the law is supposed to pay for example, employers part of PF, gratuity etc are also included in CTC. I wanted to understand, it appears from free each month's salary, if I leave the organization before 5 years, I can get an employer?
Gratuity not deducted monthly salary. Retirement benefits are paid if you have 5 years of service. If you complete 10 years of service, then you are paid 5 months of salary (basic + DA) as gratuity.
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