Gratuity Limit.. CiteHR

Surander Started The Discussion:

Hi All, What is the maximum limit of gratuity if excess 3.5 lac can any one provided me link or rules. Regards, Surrender negi

Gopikishan -  Member Since: Jul 2007
Question is not clear, however, i would still try to answer. The tax limit for gratuity is calculated as minimum of the following heads:

1. 15 days' salary, based on the last drawn salary, for each completed year of service

2. Rs. 3,50,000/-; or

3. The gratuity actually received.

Based on this you can probably suggest employees and create your reference.

The minimum period served should not be less than 5 years. You can relax this 5 year period though only as an employee friendly policy and you will not be found in contravention to the law.

Also please follow the minimum gratuity percentage to be kept aside from employee salary and employer's contribution to the same.

atharhashmi -  Member Since: Dec 2007
Hi All, Last drawn full gross salary, for each completed year of service the gratuity actually become mature. There is no limitations for that. Regard, Athar Hashmi

prakash.1974.joshi -  Member Since: Nov 2008
After complition of 5 years of services then only you will entitled to get the benefit of Gratuity subject to complete 240 day in a year.


  • Do not post anything derogatory about any company or person.
  • Sharing articles from other websites should be done by posting a link to the original article.
  • To discuss sensitive issues create a pseudo/anonymous account.
  • Please avoid repeat posting your company profile - such accounts are removed automatically.
  • Found This Useful? +Vote Up This Via Google.  

    Why Vote? User validation is extremely important for good content to prosper.
    Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.

    Cite.Co helps people come together to solve each other's problems on all aspects of professional life.
    Share This Discussion:

    3M Users, 100K+ Documents & 450K+ Discussions
    About Us - Advertise - Contact Us - RSS   On Google+  
    All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
    Privacy Policy | Disclaimer | Terms Of Service
    Facebook Page | Follow Us On Twitter | Linkedin Network