Gratuity in CTC: Is It Really Included in Your Salary Package?

Is gratuity included in the CTC?

Yes, gratuity is usually included as a part of the CTC in the benefits section. This means it does not become a part of the gross salary but is in addition to other benefits such as medical insurance, PF, etc. It is usually calculated as 4.81% of the basic salary.

Hi, if the employer opts for a Group Gratuity scheme with any insurance company (an insurance policy that helps employers save money to pay gratuity to employees when they leave the company), they can show the monthly/annual premium amount in the CTC of the employee.

Yes, the gratuity is included as one of the payment components of the CTC.