2021 · Q41
What is the maximum amount of gratuity payable to the employees under the Payment of Gratuity Act, 1972 ?
Social Security in IndiaGratuity and compensation
- A₹75,00,000
- B₹10,00,000
- C₹ 15,00,000
- D₹ 20,00,000
Explanation
Under the Payment of Gratuity Act, 1972, the maximum amount of gratuity payable to an employee is currently Rs. 20 lakhs. This limit was increased from Rs. 10 lakhs to Rs. 20 lakhs with effect from 29 March 2018, through an amendment to the Act.