The Payment of Gratuity Act, 1972 (‘Gratuity Act’) entitles every employee who has completed five years of service (taken as (i) four years and 240 days for establishments having a six day work week; and (ii) four years and 190 days for those working less than six days a week), upon cessation of employment, to gratuity calculated at the rate of 15 days wages for each year of completed service or part thereof in excess of six months.With effect from March 29, 2018, the Ministry of Labour and Employment has: (i) increased the statutory ceiling for gratuity to Rs. 2 million (approx. US$ 30,000), from the erstwhile Rs. 1 million (approx. US$ 15,000); and (ii) stipulated 26 weeks as the maximum duration of maternity leave that would be considered as ‘continuous service’ for the purpose of computing gratuity.