Scribd
Upload
53 views

GHJ If D To

The Payment of Gratuity (Amendment) Bill, 2018 has been passed by parliament to ensure parity between private sector employees and government sector employees in receiving gratuity payments. The bill increases the maximum gratuity limit to Rs. 20 lakhs, matching the limit recently set for government employees due to rising wages and inflation. It also amends the calculation of continuous service periods for female employees on maternity leave from 12 weeks to a period determined by the central government. The bill aims to provide greater social security to private sector employees at retirement.

Uploaded by

Surys Account
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
53 views

GHJ If D To

The Payment of Gratuity (Amendment) Bill, 2018 has been passed by parliament to ensure parity between private sector employees and government sector employees in receiving gratuity payments. The bill increases the maximum gratuity limit to Rs. 20 lakhs, matching the limit recently set for government employees due to rising wages and inflation. It also amends the calculation of continuous service periods for female employees on maternity leave from 12 weeks to a period determined by the central government. The bill aims to provide greater social security to private sector employees at retirement.

Uploaded by

Surys Account
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Press Information Bureau

Government of India
Ministry of Labour & Employment
22-March-2018 15:36 IST
Payment of Gratuity (Amendment) Bill, 2018 passed by Parliament

The Payment of Gratuity (Amendment) Bill, 2018 has been passed by parliament today.The bill ensures
harmony amongst employees in the private sector and Public Sector Undertakings/Autonomous Organizations
under Government who are not covered under CCS (Pension) Rules. These employees will be entitled to
receive higher amount of gratuity at par with their counterparts in Government sector. The bill was passed by
the Rajya Sabha today and the Lok Sabha on 15th March, 2018.

The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main
purpose for enacting this Act is to provide social security to workman after retirement, whether retirement is a
result of superannuation, or physical disablement or impairment of vital part of the body. Therefore, the
Payment of Gratuity Act, 1972 is an important social security legislation to wage earning population in
industries, factories and establishments.

The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh.
The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with
regard to gratuity are also similar. Before
implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10
Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the
ceiling has been raised to Rs. 20 Lakhs.

Therefore, considering the inflation and wage increase even in case of


employees engaged in private sector, this Government decided that the entitlement of gratuity should also be
revised in respect of employees who are covered under the Payment of Gratuity Act, 1972. Accordingly, the
Government initiated the process for amendment to Payment of Gratuity Act, 1972 to increase the maximum
limit of gratuity to such amount as may be notified by the Central Government from time to time.

In addition, the Bill also envisages to amend the provisions relating to


calculation of continuous service for the purpose of gratuity in case of female employees who are on
maternity leave from 'twelve weeks' to such period as may be notified by the Central Government from time
to time.
After enactment of the Act, the power to notify the ceiling of the amount of
gratuity under the Payment of Gratuity Act, 1972 shall stand delegated to the Central Government so that the
limit can be revised from time to time keeping in view the increase in wage and inflation and future pay
commissions.

****

JN/IA

You might also like