Is There a Salary Cap for Gratuity Calculation Beyond the 3.5 Lakh Limit? Seeking Guidance from Seniors

p ramachandran
Dear seniors,

Can anyone tell me if there is any limit in salary for gratuity calculation, except for the limit of the gratuity amount (3.5 lakhs)? If so, are there any notifications for that?
prashant1314
Dear,

To the best of my knowledge, there is no ceiling for gratuity limit for calculation, but the maximum limit for gratuity is only up to 3.5 lac.

In case of any queries, please call.

Prashant
09011070437
anupam.cha
Hi Ramachandan,

There is no maximum salary ceiling for gratuity. Every employee is entitled to receive gratuity upon their superannuation. The gratuity amount is calculated as 15 days' salary (basic + DA) for every completed year of service, with a maximum limit of 3.5 lakh.
shankar majhi
Hi friends,

I agree with all of you that there is no maximum wage ceiling for gratuity. However, the maximum limit of gratuity is up to 10 lakhs as per the new amendment of the Gratuity Act.
anand.backelal@parker.com
Yes, as per the latest amendment in Gratuity, the maximum amount ceiling is 10 lacs, not 3.5 lacs.
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