1The Cabinet on Thursday approved an amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh. The Bill to amend the Act will now go to Parliament, a government official told FE.
Every salaried person, who has completed five years of government or private sector service, is eligible for half a month's salary as gratuity for every completed year of service. But the gratuity pay of those with higher salaries is now limited at Rs 3.5 lakh. The proposed amendment raises this to Rs 10 lakh. Every employer with more than ten salaried workers is mandated to provide gratuity to the eligible employees. Many companies, however, do not keep the gratuity liability adequately funded. That is, they make provisions for future payment, but do not set aside funds towards the future payment. Listed companies are expected to disclose their gratuity liability.
Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) approved a proposal of India Infrastructure Development Fund Ltd (Mauritius) to raise contributions from international investors and invest in the India Infrastructure Development Fund. The proposal, earlier approved by the FIPB, will result in FDI exceeding Rs 750 crore.
The Cabinet approved the proposal of the shipping ministry to declare Andaman and Nicobar set of ports as major port and establish the Andaman and Nicobar Port Trust with its headquarters at Port Blair.
From India, Ahmadabad
correct send the copy of Act correct send the copy of Act correct send the copy of Act correct send the copy of Act correct send the copy of Act correct send the copy of Act
From India, Ludhiana
From India, Ludhiana
Hi Abhiishere, Can you send me the amendment bill for me please...? Is this approved by Union Cabinet? If yes, from when the bill will be effective? Thanks & Regards, Lakshmi.
From India, Kakinada
From India, Kakinada
Can someone explain the impact on the employer because of the amendment? What is the current cost and what would be impact because of the amendments. Thanks Vijaya
From United Kingdom, London
From United Kingdom, London
FOR abhiishere
I THINK AFTER THE BILL BE PASSED BY THE PARLIAMENT, WILL GO TO THE PRESIDENT AND ONLY THEN NOTIFICATION BE ISSUED.
DATE OF EFFETIVE OF THE ACT IF ANY , TELL PLEASE, OR THE NOTIFICATION WILL TELL THE SAME
From India, Delhi
I THINK AFTER THE BILL BE PASSED BY THE PARLIAMENT, WILL GO TO THE PRESIDENT AND ONLY THEN NOTIFICATION BE ISSUED.
DATE OF EFFETIVE OF THE ACT IF ANY , TELL PLEASE, OR THE NOTIFICATION WILL TELL THE SAME
From India, Delhi
Since the Payment of Gratuity Amendment bill has been passed in LOk Sabha and Rajaya Sabha on 4th & 5th May'10 when would the Gazette Notification available in website. Who can answer my query. I am eager to know the effective date of the revised Act.
Ashoke Kr Dhole
From India, Calcutta
Ashoke Kr Dhole
From India, Calcutta
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc