Gratuity in CTC: Can It Be Included and What Are Your Thoughts?

Could we take Gratuity as a part of CTC? Very urgent, awaiting your valuable views.

Thanks & Regards,
Bharat Mudgal
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An employee should complete 5 years of service to be eligible for Gratuity. Mentioning Gratuity in your CTC before the 5-year period of service is not the right thing. However, some employers are considering it as part of CTC, which is not a fair practice.

Gratuity Calculation in the Fifth Year

In the fifth year, you could include the component using the following calculation to cover the Cost to the Company: Gratuity = Current basic X 15 X 5 / 26, wherein 5 is the number of years worked.

Thanks & Regards,
Srilakshmi Korukonda