The amount payable to an employee shall not exceed the maximum that is notified under the respective enactments as of the date on which the gratuity becomes payable.
The Kerala High Court recently observed that the maximum amount of gratuity payable under the Payment of Gratuity Act, 1972 must be calculated from the date on which gratuity became payable and not on the date the amount was actually disbursed.
The court found that there is no merit in the petitioner's claim and said that the gratuity is payable to an employee on the termination of his employment. but the amount payable to an employee shall not exceed the maximum that is notified under the respective enactments as of the date on which the gratuity becomes payable.
"Even if it is assumed that the petitioner's claim for gratuity was under the Payment of Gratuity Act, 1972, the maximum amount of gratuity payable under the said Act has to be determined with respect to the date on which the gratuity became payable and not on the date on which sanction was accorded for payment of DCRG or the date on which the amount was actually disbursed to him", the court added.