Understanding Gratuity: How Much Should Be Added to Your Cost to Company (CTC)?

What is the correct gratuity percentage that can be added to the Cost to Company (CTC)? Kindly help.

Regards,
Vijay

4.81% of the annual basic will be treated as the Gratuity Amount. Yes, you have the option to include the Gratuity amount along with the CTC Amount.

Example of Gratuity Calculation:

Annual Basic: Rs. 200,000/-
Gratuity: 200,000 * 4.81% ⇒ Rs. 9,620.00

Please let me know if you need further clarification or assistance.

Thank you.
Regards.

Understanding the 4.81% Annual Basic Gratuity

Please explain this 4.81% of annual basic. Is it fixed for all types of industries? We are in the hotel industry. Also, is the amount calculated per employee and accumulated in the books of accounts?

Thanks and Regards,
De Sovrani