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The Payment of Gratuity (Amendment) Bill, 2017 has been passed by parliament on 22.3.2018, paving the way for doubling the limit of tax free gratuity to Rs 20 lakh and empowering the government to fix the ceiling of the retirement benefit through an executive order. The Rajya Sabha passed the bill, which was approved by the Lok Sabha on 15.3.2018. Besides enabling the central government to fix the ceiling of tax free gratuity, the bill will also empower it to fix the period of maternity leave through executive order. The Payment of Gratuity (Amendment) Bill, 2017 was introduced by labour minister Santosh Kumar Gangwar in the Lok Sabha on 18.12.2017.
The bill ensures harmony amongst employees in all the sectors viz, the private sector and Public Sector Undertakings/Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. The employees of private sector and Public Sector Undertakings/ Autonomous Organizations under Government will be now entitled to receive higher amount of gratuity at par with their counterparts in the Government sector.
The revised upper ceiling on gratuity amount under the Payment of Gratuity Act is Rs. 20 Lakh which was Rs. 10 lakhs earlier. For Central Government employees the provisions with regard to gratuity are also similar under Central Civil Services (Pension) Rules, 1972. Before implementation of seventh Pay Commission, the ceiling under CC S (Pension) Rules, 1972 was Rs. 10 lakh which was raised to Rs. 20 lakhs by seventh Pay Commission.
From India, Pune
3131The Payment of Gratuity (Amendment) Bill, 2017 has been passed by parliament on 22.3.2018, paving the way for doubling the limit of tax free gratuity to Rs 20 lakh and empowering the government to fix the ceiling of the retirement benefit through an executive order. The Rajya Sabha passed the bill, which was approved by the Lok Sabha on 15.3.2018. Besides enabling the central government to fix the ceiling of tax free gratuity, the bill will also empower it to fix the period of maternity leave through executive order. The Payment of Gratuity (Amendment) Bill, 2017 was introduced by labour minister Santosh Kumar Gangwar in the Lok Sabha on 18.12.2017.
The bill ensures harmony amongst employees in all the sectors viz, the private sector and Public Sector Undertakings/Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. The employees of private sector and Public Sector Undertakings/ Autonomous Organizations under Government will be now entitled to receive higher amount of gratuity at par with their counterparts in the Government sector.
The revised upper ceiling on gratuity amount under the Payment of Gratuity Act is Rs. 20 Lakh which was Rs. 10 lakhs earlier. For Central Government employees the provisions with regard to gratuity are also similar under Central Civil Services (Pension) Rules, 1972. Before implementation of seventh Pay Commission, the ceiling under CC S (Pension) Rules, 1972 was Rs. 10 lakh which was raised to Rs. 20 lakhs by seventh Pay Commission.
From India, Pune
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Payment-of-Grat uity-Amendment- Bill-2010.pdf