Reg:Gratuity Deduction % while making CTC

p.susanta86@gmail.com
Dear Sir/Madam,
I have one doubt on gratuity % deduction while making CTC (CTC Breakup). PLEASE note:[B]My doubt is not what is the formula for calculating gratuity while giving back to employees after 5 years
1. What is % of gratuity deduction from CTC ?
2.Is that % (4.81%/ 4.83% 4.85%) calculated on BASIC+DA or GROSS ?
Thanks & Regards,
Susanta
umakanthan53
Dear Susanta,
In fact, I am not able to understand your question for I think that C.T.C is the added value of all expenses incurred by the employer per employee per year.
Gratuity is calculated on the last drawn sum total of Basic and D.A only and not on gross salary.
shankarsurya
Dear Sir/Madam,
One of our employee admit in pvt hospital ,can he claim the amount from esic
Naveen lakhera
This is (15/26)/12 = 4.81 % per month of Basic and DA
Saaivel
Dear Sushanta,
Gratuity is part of CTC.
4.8℅ is calculated from the Basis+DA as a Gratuity.
Regards,
Vadivel E
Babu Alexander
In my opinion Gratuity can never be a part of CTC. It is terminal benefit payable after completion of five years continuous service with an organisation. The employer, has to provide provisions / create actuarial reserve value for his employees ( now linked with LIC) on retirement / resignation after five years as per Gratuity Act
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