Is gratuity included in CTC?What maximum gratuity we can give to employee?
From India, Bengaluru
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1From India, Bengaluru
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Dear HR, Gratuity can be included in CTC.Payment of Gratuity is on the basis of Employees length of Service & last drawn Basic+DA+VDA Gratuity Payment up to Rs 10 Lakhs is exempted from IT
From India, New Delhi
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From India, New Delhi
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Gratuity contribution by the employer is a part of the CTC of the employee.
Legally, there is no upper limit on gratuity amount. There are limits on the amount that will not be taxable as per the Income Tax Act (currently Rs. 10 lakhs and likely to be increased to Rs. 20 lakhs soon). The company may decide to put a cap on the maximum gratuity payable, but it is recommended not to put any upper limit. Employees should get what is due.
From India, New Delhi
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Legally, there is no upper limit on gratuity amount. There are limits on the amount that will not be taxable as per the Income Tax Act (currently Rs. 10 lakhs and likely to be increased to Rs. 20 lakhs soon). The company may decide to put a cap on the maximum gratuity payable, but it is recommended not to put any upper limit. Employees should get what is due.
From India, New Delhi
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Gratuity-Leave calculation on CTC-Rev..xls