Gratuity in CTC: Can My Friend Claim It if She Leaves Before 5 Years?

Dear friends and seniors,

One of my friends (a science graduate with hospital administration experience) has received an offer from a renowned hospital in Mumbai. Now, the Gratuity (which is a benefit that employers provide to employees for long-term service) is either deducted from or included in the Cost to Company (CTC), similar to how they handle PF contributions by deducting from both sides.

Gratuity Eligibility Query

My question is: if she leaves the job before completing 5 years (let's say within a year or two), will she still be eligible to claim the gratuity? Since gratuity is a part of her CTC, this query arises.

Thank you.

Dear Seniors, please help. She has yet to finalize the offer and wants to discuss this with the HR person.

Understanding Gratuity in CTC

Generally, gratuity is shown as a part of CTC as the employer is going to pay that amount to employees either on retirement or resignation after the completion of 5 years of service. The eligibility criteria remain the same, i.e., a minimum of 5 years of service.

However, gratuity is not deducted from salary or gross pay. You may want to recheck her salary structure.

Regards,
Vaishalee

Gratuity cannot be a part of CTC as it is a reward for an employee if they serve the organization for 5 continuous years. Thus, the CTC cannot include gratuity as a part.

Regards,
Ashish Banka