Bankers' Club

The law related to gratuity is governed by Payment of Gratuity Act.  And to increase the Gratuity Limit, Payment of Gratuity Act will be amended by Parliament.

The Gratuity Act amendment is yet to take place. There is no Payment of Gratuity Act 2016 or Payment of Gratuity Act amendment in 2016 because the Act has not been yet placed in Parliament. Latest amendment to Gratuity Act was in 2010.

Update [23rd February 2017]

The central government today agreed to allow millions of organised sector employees to withdraw up to Rs20 lakh from their gratuity corpus, double the amount permitted now.

The agreement came following a meeting between the labour ministry and representatives from states, employees and employers on Thursday.

“All the stakeholders—states, Centre, unions and the industry representatives were on the same page to enhance the gratuity ceiling from Rs10 lakh to Rs20 lakh,” a labour ministry spokesperson said after the meeting.

[source: mint]

 

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Gratuity Increase for Bankers – 6 Developments so far:

For Central Govt. workers Gratuity ceiling is raised to Rs. 20 lacs under 7^th Pay Commission w.e.f. 01.01.2016.

Gratuity ceiling for RBI staff is enhanced from Rs. 9 lacs to Rs. 18 lacs w.e.f 01.01.2016.  Calculation is one month pay plus dearness allowance for every completed year of service.

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However for bankers/ insurance staff/ public sector undertakings staff/ private sector staff the gratuity limit is Rs. 10 lacs till date.

Initiatives made by various bank unions in the matter of enhancement in gratuity ceiling:

1. All India State Bank Officers Federation, vide letter dated 19.07.2016 has taken up the matter with Central Labour Minister for increasing the gratuity limit to Rs.20 lacs.

2. All India Bank Officers Confederation, vide letter dated 17.09.2016, written to Finance Minister for amendment in central Gratuity Act in the forthcoming session of parliament.

3. All India State Bank Officers’ Federation vide letter dated 06.11.2016 took the matter with hon’ble Prime Minister.

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4. AIPNBOA on 19.09.2016 has written to Finance Minister, to  enhance gratuity limit for bank employees from Rs.10 lac to Rs.20 lac.

5. All India State Bank Officers’ Federation vide letter dated 29.12.2016 has made an appeal to Prime Minister & also written to Smt. Arundathi Bhattacharya, Chairman State Bank of India to persuade the Govt. and get the gratuity limit enhanced at par with Central Govt. Employees.

6. UFBU has now called strike on 28^th February, 2017 on various issues and enhancement of gratuity ceiling to Rs. 20 lacs.

Also Rad: 5 Days working for Banks

We’ll keep on updated you about latest news on gratuity act in India

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