How is gratuity calculated as a part of CTC?

Gratuity is a form of payment that employers make to their employees, acknowledging their loyalty, dedication and services rendered to the company. Gratuity is given to those with 5 or more years of service in one company. It is payable on the employee’s superannuation, retirement, or resignation. It is also payable on the employee’s death or disablement due to any accident or disease.