a) The quantum of gratuity is to be computed at the rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.

b) The total amount of Gratuity payable shall not exceeds Rs. 3.5 Lakhs.

c) In case where higher benefits of gratuity is available under any gratuity scheme, award or agreement, the employee will be entitled to higher benefits.

1. Objectives
2. Scope and Coverage
3. Salient Provisions
4. Exemptions
5. Employees Entitled
6. Continuous Service
7. Administrative Authority
8. Deductions permissible from Gratuity
9. Forfeiture of Gratuity
10. Nomination Sec 6
11. Intimation of Gratuity becoming payable
12. Application for payment of Gratuity
13. Notice in response to Employee's Applications
14. Mode of payment
15. Time limit for payment
16. Gratuity to be deposited with the Controlling Authority in certain cases
17. Employers to obtain Compulsory Insurance / Establish Approved Gratuity Funds. Sec 4A w.e.f. 01.02.1991
18. Protection of Gratuity against attachment
19. Obligations of Employers
20. Rights of Employers
21. Rights of Employees
22. Sample Problem