labour · In Force

Payment of Gratuity Act 1972

2018: tax-free ceiling doubled to Rs 20 lakh. 5 years continuous service. Formula: 15 days × last drawn salary × years of service. Government servants covered separately.

Amended

2018

Ministry

Ministry of Labour & Employment

Key provisions and changes

• Tax-free ceiling Rs 20 lakh
• 5 years continuous service
• 15/26 × salary × years formula
• Fixed-term employee inclusion
• Controlling Authority