The Payment of Gratuity Act, 1972 specifies minimum continuous service of 5 years to be eligbile for gratuity benefits, but is silent on the maximum number of service. It has simply mentioned the amount of Gratuity limit to be Rs.10lac.
Does it mean, a person who has more than 33 years, in the present case 37 years, is eligible for gratuity?, computed as under:
salary X 15/26 x 37 = gratuity amount, and the amount of gratuity is within the prescribed limit of Rs.10 lac as amended by notification dated May 24, 2010.
Harminder 27th June 2012 From India, Delhi