The Payment of Gratuity Act, 1972 (the “Gratuity Act”) applies to establishments employing 10 or more persons. The main purpose for enacting the Gratuity Act is to provide social security to employees after retirement, whether retirement is a result of the rules of superannuation, or physical disablement or impairment of vital part of the body. Considering the inflation and wage increase in general, the Central Government has expressed that the entitlement of gratuity should be revised for employees who are covered under the Gratuity Act and therefore, this Amendment has been approved by the Cabinet. However, it remains to be seen how soon the Parliament passes the Amendment.