Gratuity - Gratuity Calculation [Thread 395894]

HI,
Is there any salary limit in the definition of Employee for Gratuity ? For example, if any one, who is drawing more than Rs. 6,500 are not eligible to get PF and they are not covered under PF Act.
I would like to know whether there is any such limit restricting the applicability of Gratuity ?

Dear Mr.Radhakrishnan
Section 2(s) of the Payment of Gratuity Act defines the term "wages". This definition does not put any ceiling on the quantum of wages that could be reckoned for calculating gratuity. But if you see section 4(3) of the PG Act it says that the maximum amount of gratuity payable cannot exceed Rs.10 lakhs. So there is an indirect ceiling on the wages by restricting the maximum amount of gratuity payable.

Respected Sir,
we have one employee, who joined us on 13th Oct, 2008 & relieved on 23rd Aug, 2013.
please suggest whether he is eligible for gratuity or not.
N. M. Vyas