The employees of organised sector can now be allowed to withdraw up to Rs 20 lakh from their gratuity fund.
In a meeting between the labour ministry and representatives from states, employees and employers, the decision reached to the consensus.
The central trade unions have also agreed on doubling gratuity amount ceiling as an interim measure in a tripartite meeting on the proposed amendment to Payment of Gratuity Act conducted today by the Labour Ministry. The unions demanded the removal of conditions asking to have at least 10 employees in an establishment and minimum five years of service for payment of gratuity.
At present, as per the Payment of Gratuity Act, an employee is required to do minimum service of five years to become eligible for gratuity amount.
Moreover, the Act applies to those establishments where the number of employees is not less than 10.
The statement said the application of amended provision regarding maximum amount should be made effective from January 1, 2016 as done in the case of central government employees.
Besides that rate of 15 days wages for each completed year of service be raised to 30 days wages, the unions demanded.
The proposed amendment to the Payment of Gratuity Act as circulated by the government along with the letter dated February 15, 2017 only deals with enhancing the ceiling of maximum amount under Section 4(3) of the Act from Rs 10 lakh to Rs 20 lakh.
From India, Ahmadabad
34In a meeting between the labour ministry and representatives from states, employees and employers, the decision reached to the consensus.
The central trade unions have also agreed on doubling gratuity amount ceiling as an interim measure in a tripartite meeting on the proposed amendment to Payment of Gratuity Act conducted today by the Labour Ministry. The unions demanded the removal of conditions asking to have at least 10 employees in an establishment and minimum five years of service for payment of gratuity.
At present, as per the Payment of Gratuity Act, an employee is required to do minimum service of five years to become eligible for gratuity amount.
Moreover, the Act applies to those establishments where the number of employees is not less than 10.
The statement said the application of amended provision regarding maximum amount should be made effective from January 1, 2016 as done in the case of central government employees.
Besides that rate of 15 days wages for each completed year of service be raised to 30 days wages, the unions demanded.
The proposed amendment to the Payment of Gratuity Act as circulated by the government along with the letter dated February 15, 2017 only deals with enhancing the ceiling of maximum amount under Section 4(3) of the Act from Rs 10 lakh to Rs 20 lakh.
From India, Ahmadabad
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc