Dear Friends, in payout of Gratuity, is there a capping for max. amount that can be paid by Employer? For eg. my company has written the definition of Gratuity as follows:- "Gratuity is calculated at the rate of 15/26th of every month's Basic Salary for every completed year of service or part thereof in excess of six months, subject to a maximum of Rs.1,000,000". Please let me know whether capping of Rs.10 Lacs is correct and whether we actually have any capping or not, as per the Gratuity Act? Regards, Chandrashekhar.