How Do You Calculate the Right Gratuity Percentage for CTC? Seeking Advice!

rajuin123123
Hi, As per the management instructions, I want to add gratuity to the CTC. I kindly request you to please let me know what percentage should be added for gratuity in CTC.
thatsmeajit1983
It should be 4.81% of Basic Wages.
abey@comply4hr
If you want to add gratuity cost to the CTC, you need to include 4.8% of the salary. However, this will be incorrect to some extent since gratuity is based on the last drawn salary. If the person were to leave now (assuming 5 years completed), they will receive gratuity as per the current salary, but the accumulated effect on the CTC of previous years will be lower.
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