Payment of Gratuity

Hi Frnds,

As per Sec 7 of Payment of Gratuity Act 1972 says that maximum amount pf Gratuity that can be paid is Rs. 3,50,000 and also prescribes the method of calculation of gratuity to be paid.

Now if as per the method prescribed the gratuity to be paid comes out to be Rs. 4,00,000 then what amount can be paid 3,50,000 or 4,00,000?

Pls let m know what is rhe maximum amount of gratuity that can be paid by an entity to which payment of gratuity act applies?