Is Gratuity Part of My CTC Payable Even If I Haven't Completed 5 Years?

Dear All,

I need your help in clarifying my doubts. I have worked with an organization where Gratuity was part of my CTC. This means that my negotiated CTC had a component of Gratuity in it. Normally, the Gratuity act states that one can only receive it if they have worked for 5 years in an organization. However, in my case, Gratuity was part of the CTC. Should I receive it from my company or not? Please let me know the details.

Best Wishes,
Pankaj Arora

Dear Pankaj,

Many organizations include Gratuity (which is generally calculated at 4.80%) when determining the CTC. Therefore, if you have completed 5 years in this organization and are now leaving, you can claim your gratuity; otherwise, you will need to wait for 5 years.

Thanks,
Suhas Garde