Sr. Hr Executive
Srinath Sai Ram
Hr Manager
Hr Executive
+1 Other

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Is gratuity included in CTC?What maximum gratuity we can give to employee?
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Dear HR, Gratuity can be included in CTC.Payment of Gratuity is on the basis of Employees length of Service & last drawn Basic+DA+VDA Gratuity Payment up to Rs 10 Lakhs is exempted from IT
Gratuity Contribution by employer is a part of the CTC of the Employee.
Legally there is not upper limit in Gratuity Amount. There are limits on the amount that will not be taxable as per the Income Tax Act (Currently Rs. 10 lakhs and likely to be increased to Rs. 20 lakhs soon).
The Company may decide to put a cap on the maximum Gratuity payable but it is recommended not to put any upper limit. Employee should get what is due.
Yes, you can include gratuity amount in ctc as 4.81 % of basic and the maximum limit for gratuity there is no maximum limit but tax exempted amount is only upto Rs. 20 Lacs.
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