Gratuity calculation

In 2010, the Sixth Pay Commission increased the maximum gratuity limit for central government employees from ₹3.5 lakhs to ₹10 lakhs. This was followed by a similar increase in gratuity limit for the private sector employees.

Therefore, in 2016 when the Seventh Pay Commission increased the maximum gratuity limit for central government employees from ₹10 lakhs to ₹20 lakhs, there was a general expectation that the recommendation of the Seventh Pay Commission will also be extended to the private sector employees.