What is the maximum gratuity I can get?

  • Gratuity cannot be more than the amount the Central Government notifies s. 53(3).
  • If your contract or an agreement gives you a better gratuity, you keep the better terms s. 53(5).

The Labour Ministry's FAQs give the limit as ₹20,00,000, from S.O. 1420(E) under the old Payment of Gratuity Act. See the note in the gratuity guide.

Last checked 1 Nov 2026 · written from the official text · not reviewed by a lawyer. This explains the law in general and does not decide your case.

The limit on gratuity: ₹20,00,000

The Code says gratuity cannot exceed an amount the Central Government notifies (s. 53(3)). The Labour Ministry's FAQs on the Labour Codes say: “The maximum gratuity is as notified by the Central Government which is currently ₹ 20 lakhs.” (FAQ 12: official copy · our copy)

That figure comes from S.O. 1420(E) of 29 Mar 2018 under the old Payment of Gratuity Act, which says the amount “shall not exceed twenty lakh rupees” (official copy · our copy). On 1 Nov 2026, this library went through every Labour Ministry item in the Gazette of India since the Code began and found no new notification under the Code itself. The Code keeps notifications made under the old Acts in force until they are replaced, where they are not contrary to it (s. 164(2)(a)).

Service before 21 November 2025

Asked whether earlier service is worked out under the old Act, the Ministry's later FAQs reply: “The employee will be paid gratuity based on the rate of wages last drawn by the employee at the time of superannuation or retirement or resignation or death etc, on and after 21.11.2025 as per the provisions of Code on Social Security, 2020.” (FAQ 17, as on 16 March 2026: official copy · our copy)

FAQs are the Ministry's explanation, not the law.

Related questions

Ask another question