Is there any clause in Gratuity Act which allow to include gratuity a part of CTC?

Dear All, Need guidance on Gratuity payment, In my CTC the gratuity amount was included as a part of CTC, Now lately I have resigned from the Organisation giving a service for 3 years 10 months, want to know whether I can claim for my Gratuity amount in my final settlement what would be the producer, and is there any clause in Gratuity Act which allow to include gratuity a part of CTC, and the same can be claimed only after completion of 5 years. Please guide

Dear friend,
Please go through the provisions of sections 4, 4-A and 7 of the PG Act,1972 and you will understand that the sum of gratuity determined under the Act upon termination of employment is by the employer only and no contribution from the employee is required. Simply put, CTC is an accounting tool projecting the overall annual cost of employment per employee so as to be used in the salary negotiation and as such it has no legal status. When any statutory liability of the employer is shown in the CTC, it is automatically implied that it can be discharged only when the statutory norms for such liability get fulfilled.

Dear colleague,
There is no statutory provision in the Gratuity Act to include gratuity cost in the CTC.
But the employer has to consider it as a liability to pay it firstly, upon the death of an employee irrespective of the service put in and after completion of minimum five years' service. If the employment ceases before completion of five years' service or he does not die, nothing is payable to him by way of gratuity.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant