Seema -:
Can anyone give me a salary structure where Gratuity is the part of CTC. How we are calculating Gratuity amount during the Full & Final Settlement of an employee if he/she leaving the company before five years in the same context.
Hi Mahender, PFA Salary break up with Gratuity as the part of CTC. Simple formula for Monthly Gratuity Calculation is 4.81% of Basic.
If an employee leaves company before 5 yrs of completion, he is not eligible for Gratuity. In case employee has completed more than five years and eligible for Gratuity then following is the formula for the same.
PFA one example: Gratuity Amount= Basic of employee * 4.81% * number of years * 12
Regards,
Deepak Jain