Payment of Gratuity (Amendment) Bill, 2018 - (Important) (Download PDF)


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Payment of Gratuity (Amendment) Bill, 2018 ensures harmony amongst employees in private sector & Public Sector Undertakings Organizations under Govt. Bill was passed by Rajya Sabha & lok Sabha on 15th March, 2018. Present upper ceiling on gratuity amount under Act is Rs. 10 Lakh.

Image of Payment of Gratuity

Image of Payment of Gratuity

Image of Payment of Gratuity

  • With implementation of 7th Central Pay Commission, ceiling has been raised to Rs. 20 Lakh.

  • Act allows govt. to fix period of maternity leave for female employees as deemed to be in continuous service in place of existing 12 weeks.

  • Amendment to payment of gratuity law comes in backdrop of Maternity Benefit Act, 2017 enhancing maximum maternity leave period to 26 weeks.

Payment of Gratuity Act, 1972

  • Gratuity Bill was passed in 1972. Payment of Gratuity Act, 1972 allows for payment of gratuity to employees in any establishment, factory, mine, oil field, plantation, port, railways, company, or shop employing 10 or more workers.

  • Payment of Gratuity Act, 1972 applies to establishment employing 10 or more persons.

  • Main purpose of this Act is to provide social security to workman after retirement.

  • Important social security legislation to wage earning population in industries, factories & establishments.

  • Provision for Central Govt. employees under Central Civil Service Rules, 1972 gratuity are similar.

- Published/Last Modified on: June 15, 2018


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