2012 · Q45
What is the maximum limit of gratuity payable under the Payment of Gratuity Act, 1972 ?
Social Security in IndiaConcept and framework
- A3 Lakhs rupees
- B7.5 Lakhs rupees
- C10 Lakhs rupees
- D10.5 Lakhs rupees
Explanation
The Payment of Gratuity (Amendment) Act, 2010 raised the statutory ceiling from ₹3.5 lakh to ₹10 lakh with effect from 24 May 2010. The ceiling applicable in 2012 was therefore ₹10 lakh. Figures of ₹3 lakh, ₹7.5 lakh and ₹10.5 lakh do not match the statutory maximum. Hence option C.