Why Is Gratuity Deducted from My CTC If I Won't Receive It After 4 Years?

Dear Friends,

First of all, I would like to wish "HAPPY FRIENDSHIP DAY" to all my dear friends.

I am currently working in an industry where there is a CTC system. In this system, 8.33% bonus is calculated on the basic salary, and 4.81% gratuity is also included in the calculation.

This means that from my salary, I receive bonus and gratuity. However, if I leave my job after 4 years, I would not receive the gratuity amount. I am curious as to why this 4.81% gratuity is shown and deducted in the CTC.

Regards,
Kamlesh

Dear Kamlesh,

It depends on the terms and conditions of your appointment letter. If it is mentioned that you will get your gratuity as per the Gratuity Act, in that case, you are not eligible to receive your gratuity amount if you leave the job after 4 years. If it is not specified, then you can get your gratuity amount on a pro-rata basis.

Regards,
Mahender Singh