Gratuity Limit Confusion: Is There an Official Gazette Notification for Rs. 3.5 Lakhs?

Dear Friends,

The maximum limit of gratuity is Rs. 3.5 lakhs. Is there any Gazette Notification? If so, could someone please provide it urgently?

Regards, PBS KUMAR

Dear PBS,

The law, which is made for gratuity and the provision made in this for the limit of gratuity (Rs. 3.5 L maximum), is itself a gazette notification. It was decided by the government authority while making this law, which contains the board of members from the Labour ministry.

I hope it is clear.

Thanks, Amit

Dear Mr. Amit Ji,

Every amendment of the act is accompanied by a notification, just like the recent Bonus Ceiling Amendment notification. An act should not be amended without a gazetted notification.

Regards,
PBS KUMAR

Hi,

As per my knowledge, the maximum limit is 3.5 lakhs, but a company can request an increase according to its requirements, subject to approval by law. However, any amount above 3.5 lakhs is taxable.

If I am wrong, please correct me.

Now there is a bill to raise the gratuity limit to 10 lakhs. The bill has been introduced in Lok Sabha. Copy attached.

Regards,
PVG