dear Mr.Korgaonkar,
I appreciate ur immediate n sincere response with a copy of the proposed bill n thank u very much.Barring the Working Journalists( Conditions of Service & Missll.Provisions) Act,1955 there were no labour legislations incorporating gratuity as one among the service conditions though the matter was receiving the attention of the Govt. of India since as early as 1943 and a recommendation in this regard was given by the Labour Investigation Committee.As usual only the states of Kerala n West Bengal became the forerunners and passed their own State's Acts of Gratuity respectively in 1970 n 1971.Other states also seriously started to have their own laws on the subject.So a compulsion for a common law applicable through out the country arose n the Central Govt enacted this law in 1972.Initially the Act covered only those employees drawing wages(only basic+dearness allowance) upto Rs750/= p.m in factories,plantations,shops,establishments n mines.The quantum of gratuity payable was fixed @ 15 days last drawn wages. The maximum amount of gratuity was limited to 20 months wages.Since then, the Act was amended 7 times in 1984,1987,1994,1998,2009 and 2010 incorporating periodic n drastic changes and modifications in its coverage, applicability,definition clauses,ceilings etc.,Though I am as much skeptical as you are about the bill's metamorphosis, it is a welcome effort by a people's rep n if comes to fruition, it will be of immense benefit to the working masses considering the galloping inflationary trend in cost of living n the changes in life-style.
From India, Salem
6018I appreciate ur immediate n sincere response with a copy of the proposed bill n thank u very much.Barring the Working Journalists( Conditions of Service & Missll.Provisions) Act,1955 there were no labour legislations incorporating gratuity as one among the service conditions though the matter was receiving the attention of the Govt. of India since as early as 1943 and a recommendation in this regard was given by the Labour Investigation Committee.As usual only the states of Kerala n West Bengal became the forerunners and passed their own State's Acts of Gratuity respectively in 1970 n 1971.Other states also seriously started to have their own laws on the subject.So a compulsion for a common law applicable through out the country arose n the Central Govt enacted this law in 1972.Initially the Act covered only those employees drawing wages(only basic+dearness allowance) upto Rs750/= p.m in factories,plantations,shops,establishments n mines.The quantum of gratuity payable was fixed @ 15 days last drawn wages. The maximum amount of gratuity was limited to 20 months wages.Since then, the Act was amended 7 times in 1984,1987,1994,1998,2009 and 2010 incorporating periodic n drastic changes and modifications in its coverage, applicability,definition clauses,ceilings etc.,Though I am as much skeptical as you are about the bill's metamorphosis, it is a welcome effort by a people's rep n if comes to fruition, it will be of immense benefit to the working masses considering the galloping inflationary trend in cost of living n the changes in life-style.
From India, Salem
Dear Ccbenzzz,
There is no need of appology. We all are in learning stage and we learn by mistakes. Please do not take my comments to the heart. Read more and more. Make it a hobby. Make it a passion. You have so many sources now a days to get to know. Thanks for giving one of the sources to this forum by you, i.e. the link of PRS Legislative Research. Thanks again.
From India, Mumbai
There is no need of appology. We all are in learning stage and we learn by mistakes. Please do not take my comments to the heart. Read more and more. Make it a hobby. Make it a passion. You have so many sources now a days to get to know. Thanks for giving one of the sources to this forum by you, i.e. the link of PRS Legislative Research. Thanks again.
From India, Mumbai
The limit of Gratuity is 10 lacs. However, there is no restriction if the Company wants to pay a higher amount as Gratuity to its employees.
In such a case, the Income Tax benefit shall be restricted to Rs. 10 lacs only and the balance amount shall be taxable in the hands of the employee.
Further, the status of the proposed amendment to increase the calculation basis from 15 days to 30 days is still a proposal and has not yet been passed.
From India, New Delhi
In such a case, the Income Tax benefit shall be restricted to Rs. 10 lacs only and the balance amount shall be taxable in the hands of the employee.
Further, the status of the proposed amendment to increase the calculation basis from 15 days to 30 days is still a proposal and has not yet been passed.
From India, New Delhi
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc