Did gratuity increased for bankers? Is there any notification for increase in gratuity?
The following message is circulating on whatsapp.
Gratuity ceiling enhanced from Rs. 10 Lakhs to Rs. 20 Lakhs from 1st January 2016. Gazette Notification No. 38/37/2016-P&PW(A) Dated 04.08.2016 published.
The text in Item No. 8 of the Notification is as follows:
Gratuity Ceiling & its Indexation
The Commission recommends enhancement in the ceiling of gratuity from the existing Rs.10 Lakhs to Rs. 20 Lakhs from 01.01.2016. The Commission further recommends the ceiling on gratuity may increase by 25% whenever DA rises by 50%.
Decision of Government: Accepted.
Item 9 is for Rationalisation of Death Gratuity
Ceiling of Gratuity has been increased from Rs.10 lacs to Rs.20 lacs in respect of government employees only. The benefit to bank employees and other employees can be extended through amendment in Gratuity Act 1972.
AIPNBOA has issued a circular (attached) in this regard that they have written to Finance Minister, Arun Jaitly to take up the amendment of Central Gratuity Act to increase gratuity limit for bank employees and all other employees from 10 lac to 20 lac