Enhancement of gratuity limit

Speed Post News Network

New Delhi : The Government on March 29, 2018, issued a notification wherein gratuity limit has been increased from Rs 10 lakh to Rs 20 lakh under the Payment of Gratuity Act, 1972. The Government also issued another notification the same day increasing the maximum period of maternity leave in case of female employees to be counted as continuous service from 12 weeks to 26 weeks under the Payment of Gratuity Act, 1972.

Representations from various stakeholders have been received in the Ministry. The Ministry had also organised tripartite consultations on February 23, 2017, with all stakeholders including representatives of employers and employees, who supported the proposal. The provision contained in the amended Payment of Gratuity Act, 1972, have been implemented with effect from March 29, 2018.

This information was given by Santosh Kumar Gangwar, Union Minister of State (I/C) for Labour and Employment, in written reply to a question in Rajya Sabha on Aptil 4, 2018, according to a PIB release.