Understanding Gratuity in CTC: How Do You Calculate the Right Percentage?

V Ganesh

Gratuity Percentage in CTC

To all Cite HR users, could you please tell me what will be the percentage of gratuity to be included in an employee's CTC?

Regards,
V. Ganesh
Senior Executive - HR

amitchaudhari

Understanding Gratuity

Gratuity is a bonus paid to the employee by the employer after 5 years of continuous service. It can't be considered a part of the CTC.

redgaonkar_k

Gratuity is to be calculated on Basic & DA. The percentage of Gratuity is 4.81%.

Regards,
Kiran

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