Gratuity increase for bankers – Lok Sabha passes the bill

Last updated by Jai on March 15, 2018

Lok Sabha today passed the amendment in Payment of Gratuity Act to increase the Gratuity ceiling to Rs.20 lacs. The existing limit for gratuity was Rs.10 lacs.

After implementation of seventh pay commission, gratuity ceiling was increased from Rs.10 lacs to Rs.20 lacs for Central Government employees. Private Sector employees including bank employees were demanding for increase in the gratuity limit.

Read: Why Uco Bank to pay its ex-employee one lac rupee as fine

The bill passed today, notifies the period of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity ceiling from time to time without amending the law.

An employee becomes eligible for gratuity if he completes at least five years of continuous service in an establishment.

The bill will now be placed in Rajya Sabha for approval and after the consent of President, the increased gratuity limit shall become effective.

Categories: News

2 Comments

Nasrin Arief · March 21, 2018 at 3:47 pm

In the news of gratuity for banker’s by Jai, it’s written “Private Sector employees including bank employees were demanding for increase in the gratuity limit.” The employees of PSBs are not private sector employees! So it’s not correct .

Bireswar kundu · April 3, 2018 at 9:09 am

Why our trade union not protest about the effective date of gratuity amendment bill?Our Union have to protest against discrimination between central govt employee and bank employee.Central govt employee get effective date from 01/01/2016.RBI also get the same.Onion have to think for mass not for their individual interest.

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