• Mar
  • 05
  • 2010

Cabinet approves increase in Gratuity limit from Rs 3.5 lakh to Rs 10 lakh

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Cabinet approved amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh

The Cabinet on Thursday approved an amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh. The Bill to amend the Act will now go to Parliament, a government official told.

Every salaried person, who has completed five years of government or private sector service, is eligible for half a month’s salary as gratuity for every completed year of service. But the gratuity pay of those with higher salaries is now limited at Rs 3.5 lakh. The proposed amendment raises this to Rs 10 lakh. Every employer with more than ten salaried workers is mandated to provide gratuity to the eligible employees. Many companies, however, do not keep the gratuity liability adequately funded. That is, they make provisions for future payment, but do not set aside funds towards the future payment. Listed companies are expected to disclose their gratuity liability.

Download Payment of Gratuity Amendment Bill 2010

Related Post:-

1. Cabinet approved amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh

2. Lok Sabha passes bill to hike gratuity ceiling to Rs. 10 lakh from Rs. 3.50 Lakh

3. Gratuity Limit increased to 10 Lakh as per Income Tax Act and Gratuity Act in Rajya Sabha

4. Payment of Gratuity (Amendment) Act, 2009 – Amendment in section 2 and insertion of section 13A, Change in definition of employee


139 Responses to “Cabinet approves increase in Gratuity limit from Rs 3.5 lakh to Rs 10 lakh”

  1. kadrao says:

    I have complete 26  year service in army  no 14550214l Ex hav ftr (fd)   ‘y’group my graute is ?

  2. Sastry says:

    May Day 2012 Labour Ministry pro labour advertisements are over. Only action is awaited. Is the labour ministry and labour Union representatives are hearing?

  3. A.K.SINHA says:

    i am of a strong belief that all the section of society and now joined by govt.are not interested in senior citizen.No one bothers to look into their care.Now needed more but atleast dont divide this group that too in the terms of years.i extend all support towards this amended act and can come to one conclution.let 1.1.2006 be one date for all segment A.K.SINHA ,CHAKAN ,PUNE

  4. kc klair says:

    There appears to be a sinister design on the part of this govt to effect gratuity date wef 24.05.2010 instead of 1.1.2006. Parliament has not indicated any date. It appears that the Govt has not only befooled the affected employees but also the parliament, reasons for which are only known to the labour minister. It will be in the fitness of things for the labour minister to confide this to the countrymen. It is not for nothing that the ruling party is getting a drubbing in elections everywhere. It is high time they see writings on the wall and make amends.

  5. AMIT CHHABRA says:

    HI SIR HOW R U I AM AMIT CHHABRA & MY DAD WAS IN PNB HIS BASIC PAY WAS 17980 & WE GOT DEATH GRATUITY 3.5 LAKHS ONLY PL GUIDE ME BCOZ WHEN I GO TO BANK THEY DONT GUIDE ANYTHING & SAY ABHI KUCH NAHI KAH SAKTE .PL HELP THAT CAN I GET THAT BALANCE AMOUNT .

  6. Satish Kumar Sinha says:

    Sir,
    I retired on 31 Oct 2009 from the Indian Air Force after serving 29 years as Junior Warrant Officer. I have been paid Rs 3.5 Lac as Gratuity. Am I eligible to get enhanced rate of Gratuity Rs 6.5 Lac? If anyone knows about this, they are free to reply me.

  7. zankar majithia says:

    i retired on dt.31-05-2007, i rcvd. 3.50.000 for gratuity, let me inform that new amendment is applicable for me pl inform. am i eligible for gratuity amt. upto rs. 10,00,000/-.

  8. PRADEEP KUMAR SHARMA says:

    I joined central govenment service(Postal deptt.) on 27.01.2005 and resigned on 18.02.2010 under new pension scheme, Now Is am eligible for gratuity under new pension scheme
    suggest me court case in this regards
    thanks

  9. Vinod Kumar says:

    Sir, Pl. tell me some questions 1. My job 27.05.2004 to 14.01.2010, Ministry of Coal, Shastri Bhawan, New Delhi. As a typist 5000/- PM (Contract basis). My question, I am eligible for Gratuity.

  10. Boby says:

    As per News papers our Hon. Politicians are demanding Ex-gratia of Rs.10 lakh for people who died in hooch tragedy. Employees who retired after 3 decades of service do not get Gratuity of Rs.10 lakh. What a tragedy; No takers on the issue.

  11. Satya says:

    Why all the LIC & Banking higly organised Unions who were crying on the issue became silent after 23.05.2010. If M.P,s donot represent Public Issues and Unions donot represent their members issues, is it not a slap on the members face!. How poor retirees, who cannot effort to go to courts for redressal , have to respond to the issue?. Let the issue be represented to sensitive Parliamentarians.

  12. A.V.ACHARYA says:

    DEAR SIR,

    IF AS PER CALCULATIONS A PER IS ELIGIBLE TO RECEIVE GRATUITY AMOUNT OF MORE THEN TEN LAKHS , WILL HE BE GIVEN GRATUITY OF MORE THEN 10 LAKHS OR HE WILL NOT GET AS THE LIMIT IS SET AT 10 LAKHS

  13. Sastry says:

    Dear Sir,

    Thanks for great, great news. Will it happen before next budget!

  14. S.M.BASHA says:

    These statutory matters will take some more time to get re-amended. But one thing is certain that there must not be any discrimination among the beneficiaries who are covered as per the norms of the gratuity act.

    So, as per central government employees who got enhancement of gratuity w.e.f.1.1.2006, everybody must get, if not to-day, but definitely with a little bit delay, at a later date. Let the government correct its historical mistake.

    Let us wait for the justice.

    S.M.BASHA

  15. Kamlesh Gopani says:

    Sir,
    I resigned wef 1st May 2010.I was working for Pvt.Firm.As I have heard that for pvt.firms some ammendment will be there and as per that I will be also eligible for increased limit of Gratuity i.e.10.0 lacs.effective date 24th May 2010 was declared but now it is extended during 2011.Please reply whether I will get in future or not ?
    My email ID is kpgopani@yahoo.com
    Thanks
    Kamlesh Gopani

  16. S.M.BASHA says:

    Dear Sir,

    The demand for extension of payment of enhanced gratuity w.e.f.1.1.2006 is still alive. The matter is under active consideration of GOI. A day or the other, it is inevitable for them to correct the mistake to keep faith and confidence on it.

    Be confident, live happily and forget the tomb for the time being.

    S.M.BASHA

  17. Sastry says:

    Dear Sir,

    October 1st is observed as International Senior Citizens day. We see lot
    of bill boards regarding Senior Citizens every where and everyday, in
    India. Even in annual budgets of Finance Minister, senior citizens
    will figure. But on enhanced Gratuity Revision from 1.1.2006, Govt /Unions have
    conveniently forgotten about their well being, after retirement.
    Afterall life a is a small journey from womb to the tomb.
    Is the issue dead?

  18. Arya says:

    This is a story about four people named Everybody, Somebody, Anybody, and Nobody.

    THERE WAS AN IMPORTANT JOB TO BE DONE AND EVERYBODY WAS ASKED TO DO IT. EVERYBODY WAS SURE SOMEBODY WOULD DO IT. ANYBODY COULD HAVE DONE IT, BUT NOBODY DID IT.

    SOMEBODY GOT ANGRY ABOUT THAT, BECAUSE IT WAS EVERYBODY’S JOB. EVERYBODY THOUGHT ANYBODY COULD DO IT BUT NOBODY REALIZED THAT EVERYBODY WOULDN’T DO IT.

    IT ENDED UP THAT EVERYBODY BLAMED SOMEBODY WHEN NOBODY DID WHAT ANYBODY COULD HAVE DONE.

    It’s Your Fault; do you find yourself saying this to others and yourselves? This is the road to Freedom from The Blame Game;

    Blame is so common that it is seldom questioned. It is almost a form of bonding ritual among certain people to blame somebody for something every time they speak. People blame their job, various authority figures, the government, the economy – the list is endless.

    When we take responsibility for our feelings, we begin to make significant headway toward inner healing, but the difficulty is that even when we intellectually own our experience, we continue to unconsciously blame. We remain stuck in self-rejection, preventing true acceptance, integration, and release of negativity. One of the essential challenges of any therapy is getting past unconscious blame.

    Let us blame ourselves for the present state.

  19. Arya says:

    As a last resort pensioners of the 01/01/2006 to 24/05/2010 block / their representative Associations may make a personal representation to Prime Minister Shri.Manmohan Singh, as was done by News paper Employees, on the issue of implementation of their Wage Board recommendations recently.

  20. Sastry says:

    Reserve Bank OF India has pointed out recently that since headline and core inflation have overshot even the most pessimistic projections, there is a
    concern that inflation expectations might become unhinged. Reeling
    under high inflation many households do not see any respite even in
    the year(s) ahead. The govt. has done great injustice to a few hundreds
    of PSU retirees belonging to the block 01/01/2006-24/05/2010 by
    implementing INCREASED GRATUITY PAYMENT FROM 24/05/2010 ONLY,
    where as it is made applicable to Central Govt.employees from
    01/01/2006.Even tax benefit were denied to the people in this bracket. Why different yard sticks are applied so much so when the sixth pay commission has
    increased the pay packets of the central govt.employees much more.
    Again this ISSUE is not taken up by Govt/Unions as a matter of
    contention in spite of several representations from the retired employees from
    the block 1.1.2006 to 24.05.2010. The measure reflected the
    insensitivity of the Government to the plight of retirees. It
    appears that the Govt is more concerned with health of Private Sector
    than pensioners retired who were already groaning under the impact of
    the high prices of essential commodities. We request the UNIONS to taken up the issue in the Monsoon session of Parliament. For the employees
    retired its not the end of the road/life time. We know that the
    departed soul will not rest in peace, still we will pray for it.

  21. Dharma says:

    Civil Society activists have have an important role to play in a democracy by taking up critical issues that are ignored by political class or Unions either by default or by design. Let the issue be taken to to eminent people like Sri.Krishna Ayyar…etc as a last resort.

  22. Dharma says:

    I recommend reading the article written today (5th June) in Times of India by Chetan Bhagat.
    Kings ruled our country for thousand years. The people were helpless against the atrocities & misdeed of the king. British Empire with its immense power ruled our country for 250 years then. Luckily, leader like Mahatma Gandhi who fought & left unparallel legacy of nonviolence & liberated our country.
    We thought that we will see golden time ahead because we sent elected representative to run peoples government where people were supposed to have power to establish a system were all have basic rights described in our constitution.
    Unfortunately, those elected leaders became kings who in coalition with corrupt businesspersons gathered huge wealth. These corrupt practices were carried down by the beurocrates to grass root level & unfortunately, no one dares to challenge the corrupt.
    The only way we can abate corruption by challenging the corrupt practices we face in our daily occupations. The present events carried by Anna Hazare & Baba Ramdev are a wakeup call for everyone. Do not bow down to corrupt practices. Challenge them.

  23. Dharma says:

    So we have performed the first anniversary for the hope on payment of revised gratuity, murdered by the GOVT.& THE UNION /ASSN. on 24/05/2010.We know that the departed soul will not rest in peace,still we will pray for it.

  24. Dharma says:

    Roti,Kapada,aur Makan are the issues on which our Unions, Political class, thrives in India. PSU employees are the people belonging to the educated class. While wage revisions are supposed to take care of Roti and Kapada, Gratuity is one time benefit which is supposed to take care of MAKAN. During the last 6 years the prices of MAKAN were systematically hiked by Govt&Private Partnership, in the name of free economy. At present you can purchase an economy type four wheeler with the monies you receive on account of enhanced Gratuity. Even this benefit is denied to the educated PSU employees retired between 1.1.2006 to 23.05.2010 by Govt by citing Private sector employees. Now the educated retired employees have become helpless. Rest of the public are observing keenly how the so called educated class will rescue themselves, in the free economy where vegitable rates compete along with Bombay Stock Exchange Index and all commodities are sold above Maximum Retail Price. Even the minimum auto fare charged to visit nearest hospital is above Rs.50 in Urban Areas. Perform or perish is the slogan. Hee… RAM.

  25. Sastry says:

    To start with let the affected employees in and around Delhi along with their well wishers in their Unions/Associations (retired employees from 01/01/06 to 23/05/10 )should unitedly march to Delhi and should meet their M.P.s, Rajyasabha members, Labor Minister, F.M, P.M, Chief Justice, and President of India, before undertaking demonstrations before parliament during the coming Monsoon session of parliament. We will be celebrating the first anniversary of passage of Gratuity Bill in May 2011.

  26. vimal soni says:

    all the retired employees from 01/01/06 to 23/05/10 should unitedly march to delhi and should demonstrate before parliament during the coming moonsoon session of parliament.you will see that by taking the initiative the other unions will definitely join us.for this the retired leaders of various organisation have to come together.
    Reply

  27. vimal soni says:

    all the retired employees from 01/01/06 to 23/05/10 should unitedly march to delhi and should demonstrate before parliament during the coming moonsoon session of parliament.you will see that by taking the initiative the other unions will definitely join us.for this the retired leaders of various organisation have to come together.

  28. Sastry says:

    Make an appeal to P.M’s office, whose address is available on web.

  29. Satya says:

    all of u above

    1). stop shouting and do some social work and collect some money and do some act of co-ordiante make a common committees and apeal to govt collectively
    2). We do not find a single instance where a memorandum was submitted by the retirees to the lawmakers.

    don’t just shout.

  30. Sastry says:

    Kindly use telegram(s) till the sight is restored. Addresses are available from “Parliament” sight.

  31. K.Ghosh says:

    Mr Sastry’
    Thaks a lot for your advice. As per your suggestion I tried to send my communication to rslib@ sansad.nic.in but unfortunately delivery of the message failed—- it says address rejected. This is for your info.

  32. Sastry says:

    I request all the members to lodge a protest against the Gratuity Amendment Bill 2010 which is made applicable from 24.5.2010. While the earlier Gratuity Amendment Bill 2009 has been made applicable from back date i.e. fr. 01.01.2006 for central govt employees. Lots of employees (private sector) who retired after 1.1.06 to 23.5.2010 will not be benefitted by this recent amendment bill 2010. I therefore request all the people who retired from any PSUs after 1.1.06 to23.5.2010 to lodge a protest at rslib@sansad.nic.in. This is a proper platform. This is the email address of Rajyasabha Petition Committee who listens to public grievances and according recommends to govt. I hope that lots of people to this so that we can make the petition committee to further amendment the effective date of the bill to 1.1.06 instead of 24.5.2010,
    at least during the current budget session 2011.

  33. A MADHAVA REDDY says:

    DEAR SIR ,
    MY NAME IS A MADHAVA REDDY
    I AM WORKING IN LPG DISTRIBUTERSHIP(IOCL)AS A COMPUTER OPRAETER SINCE LAST 15 YEARS , ONE YEAR BACK I WAS REGINED MY JOB,COMPANY GIVE EXPIRIANCE CERTIFICATE ,
    BUT COMPANY NOT GIVE ANY COMPANSETION , COMPANY PROPRITER TOLD IN THIS COMPANY NO PAY GRATTUTE AMT, WE SEND A NOTICE WITH LAYER .COMPANY REPLIED IN COMPANY EMPLOYEES NOT MORE THEN 9 MEMBERS SO WE WILL NOT PAY GRATTITY AMT. BUT IN COMPANY EMPLOYEES NEARLY TWENTY EMPLOYEES . COMPANY NOT MAINTEN SALARY REGISTER, LAST ONE YEAR BACK THEY MAINTEND A RECORD ONLY 9 NUMBERS , BUT IN COMPANY EMPLOYEES MORE THEN 15 NOS. I WANT HELP WITH YOU.
    PLESE GIVE SUGGENTION TO ME SIR

  34. ANIL KR. says:

    recently i have recieved Rs.2.25 lacs as PF from my earlier company . will it attract TAX.

  35. RAVINDRA D PATHAK says:

    in continuation to the earlier brief it is very important to mention here again that the central /state govt employees have been granted ammended gratuity wef 01/01/2006 itself and why psu/board /carporation / are deprived of revised gratuity payment from gratuity ammendment act may 2010?- RAVINDRA D PATHAK SH 22 VIJAYNAGAR A B ROAD INDORE M P 452010

  36. RAVINDRA D PATHAK says:

    we do totally agree with your views since deprived of JUSTIFIED PAYMENT due to ammendment act 2010 just effective from may 2010.there is great discontentmet among psu/ board /cooperative soceity employees over the issue and each & every learned awared employee must take this issue to the appropriate authority even parliamentrary affairs ministery for lawful/ legitimate demand.- RAVINDRA D PATHAK SH 22 VIJAYNAGAR A B ROAD INDORE MP CELL 09179314522 09425912903

  37. tapan kumar sanyal says:

    I retired from Bank’s service on 30.04.2010 . I am the victim of amended gratuity act and the gross income during the current financial year will come over Rs 10.00 lac arising out of salary revision and the I.T will be calculated on 30% slab since i did not get the benefit of amended gratuity act. I therefore request all concern to take up the matter seriously with the Govt so as to get the effect of amended Gratuity act by all not by Govt employee alone.Discrimination and injustice should be looked in to by our hon’ble members of the Parliament.

  38. Salian KA says:

    With reference to Mr G.Laxminarasimhulu’s message, I am a private sector employee retired on 3.6.2009

    Mr K.A.Salian
    A/402 Shiv Surbhi Apt
    Thakur Village
    Kandivli (E)
    Mumbai 400101

    Mobile: +91 9820253046
    Landline: 022 66400279
    Email:krishnappa.salian@yahoo.in

  39. Salian KA says:

    This is response to Mr G.Laxminarasimhulu’s message. I am a private sector employee retired on 3.6.2009. My contact details are as under:

    Mr K.A.Salian
    A/402 Shiv Surbhi Apt
    Jivlapada, Thakur Village
    Kandivali (E)
    Mumbai 400 101

    Mobile:+91 9820253046
    Landline: 022 66400279
    E-mail:krishnappa.slian@yahoo.in

  40. LAXMINARASIMHULU says:

    The contents of the 4 page petition drafted can not be placed here, hence I request all the retirees to act quickly and send the aabove details. If need be contact
    over phone given above.

    G.Laxminarasimhulu

  41. LAXMINARASIMHULU says:

    Dear retirees,

    Kindly send all your email & contact addresses as a detailed petition is being submitted to Committee on petions of Rajyasabha, for taking up the matter at appropriate level for removal of discrimination & injustice of making Gratuity applicability from different dates to retirees of centrl Government & others. The response is very very positive. Hence, I request all the CPSE retirees from BHEL,ONGC,HPCL,IOC etc. to quickly respond sending the above to the mail id gln30514@yahoo.co.in (M no.9849804933 Land Line Residence 040-40146759 so that further details and action plan can be shared in this regard.

    G.Laxminarasimhulu
    One of the retired victim.

  42. praveen says:

    sir please send me latest ammendments in in Gr. act.
    regards
    praveen

  43. Sastry says:

    On the last day of every month when ever we open the news papers we find advertisements on “Superannuation wishes” and “Retirement greetings”. But unfortunately for employees retired between 01.01.2006 to 23.5.2010,it has become a day of CONDOLENCES due to discriminatory implementation enhanced Gratuity Act w.e.f 24.05.2010. The wounds inflicted by the amendment are becoming deeper and deeper as the days pass on, due to callous attitude of employees representative unions/by law makers, towards the issue. The cost of living is increasing day by day living the lives of the retiree families to market forces. Gratuity lost gratitude.

    Sastry

  44. vimal says:

    It is quite unjustified and injustice to those who have retired from PSU & Banks between 01/01/06 to 24/05/2010 if the enhancement of gratuity limit from 3.5 lakh to10 lakhs given to the central & state govt.retired employees is not paid to them.it appears that enhancement of gratuity limit from 24/05/10 for a group of employees shows malafied intentions of the ruling party and is not going to help them in the long run.Please do not force the employees to go to the court of law and be kind enough to deliver the justice to them by amending the implementation date of the gratuity act 2010 with retrospective effect from 01/01/06 instead of 24/05/10 before coming festival season.Hope Union govt. will review the sentiment of retired employees and reconsider the effective date.

  45. kamal singh says:

    all of u above

    1). please make a website regarding this and collect your phone numbers and addresses so that u can all fight collectivily and
    2). stop shouting and do some social work and collect some money and do some act of co-ordiante make a common cometee and apeal to govt collectively
    3) remember if u get collected then only u will get 10 lakhs no other ways.

    regards and don’t just shout.

  46. pankaj kumar says:

    this is wrong act

  47. Sastry says:

    Except that some people have made appeals, it appears that there is no strong follow up from any level,on the subject matte,as it has effected only retirees.Even the retires were staying in different places. c.. It was only due to very strong public opinion that there is discrimination between government employees and PSU/Private employees that Government was persued to issue this ordinance for existing employees. Not even a single soul has raised the issue in the monsoon session of the parliament.The only alternative we feel is that in case some senior leaders in GOVT are contacted personally by some group and raise the issue so that government may at least think about the same.The Govt took two years to get the bill passed in Lok Sabha. The recent salary increase to our Hon M.Ps’ is with retrospective effect.Hence the effective date at least be requested to be made date of putting the bill before the Parliamentary Committee.

    Sastry

  48. M.S.S.Jalaludin says:

    Dear Honourable Labour Minister Mr. Mallikarjun Kharge,

    Subject:- Effective date of gratuity amendment act 2010 for private sector employees

    It is painful to note that you have deviated from the practice of amending labour acts for private sector, PSU and Govt employees while notifying the effective date of Gratuity act 2010. By this you have discriminated the private sector retired employees causing huge loss to the old people.
    Now there are three effective dates-

    1)For Govt employees from 01-04-2006
    2)For PSU employees from 01-01-07
    3)For Private sector employees from 24-05-10

    I do not want to put arguments before you to substantiate my grievance as I am seeking only for natural justice-treat all employees equally before law as done earlier. Therefore, I request you to come out with a gazette notification making the effective date from 01-04-2006 and treat all employees as equals before law.

    I am also from Karnataka and you have stated recently in Karnataka that the effective date is changed to 01-01-2007 and, if it has to be made effective from 2206 you need to discuss with the employers group. But, I am made to understand that the effective date for private sector remains as 24-05-10 without an change. If you had the intention to change it to 01-01-07 for private sector employees also, I request you to amend the effective date immediately to help them.

    Affordabilty is not at all a factor for private sector employers in India as all the private sector businesses made year –on-year increased profits even during the peak global recession time; and, they took advantage to issue massive pink slips to their employees during that period. I am confident that you would agree with me if I say that our govt treasury is not running on surplus annual budgets to become more compassionate to their employees. This shows that you have got the intent to make it retrospective as done in the earlier amendments of the act . Unfortunately you missed out to extend the same to other employees.

    I once again request you to correct the anomaly immediately.
    Please revert.

    Best regards
    M.S.S.Jalaludin
    Retired Employee from Private Sector on 01-06-2008

  49. IK ARORA says:

    I retired from a Public Sector Undertaking on 31st January, 2010.Not only employees of our company but also employees of other PSUs who retired from 1 Jan., 2007 to 30th April, 2010 got gratuity at the enhanced rate i.e. Rs. 10 Lakhs as per guidelines of DPE. I also got gratuity of Rs. 10 lakhs but employers has deducted the income tax on the difference of gratuity i.e. 6.50 lakhs as per provisions of Income Tax Rules. Govt. employees are getting exemption from Income Tax on grautity of Rs. 10 Lakhs. w.e.f. 1.1.2006. As per recently amended Gratuity Act, non-govt.employees will get income tax exempted gratuity upto Rs. 10 Lakhs w.e.f. 23th May, 2010. It is said all are equal before the Law. But it seems that Govt.employee and non govt. employee are not equal before the Law of Indian Income Tax. Why this type of difference is being created? Is it not a violation of Law of Equality? All the members of Parliament, have raised their salary and Pension Benefits. Why they are not putting any question in the parliament in this regard?
    We request, Hon’ble PM, FM and Labour Minster to take care of employees retired from 1.1.2007 to 23rd May, 2010 and issue a suitable notification exempting the gratuity upto Rs. 10.00 Lakhs from income tax in respect of those effected thousands non govt.employees.

    Regards & Thanks,

  50. shah says:

    I would like to know whether the gratuity calculation is done on monthly basic salary or yearly basic salary.

    For example:
    Monthly basic salary * 15/26 * number of years of service
    or
    Yearly basic salary * 15/26 * number of years of service

    Thanks

  51. narendra says:

    Good Monrning
    Is PF withdraw money taxable? if yes what is the condition.

  52. a.k.bhowmick says:

    retired frm a psu on 31/05/2010 and recd rs 3.5 laks.should eligible for revised gratuity

  53. S.SEKHAR says:

    Every one is taking of cent.govt. and PSU employees . There is one PSU disinvested in 2001 with 49% shares still with GOI AND 51% WITH PVT.PARTNER with management control. Pvt.partner is paying gratuity without ceiling i.e.beyond 3.5 lakhs. However for employees working since PSU days are paid as per ceiling limit of 3.5lakh.The increased amount is applicable wef 24/5/2010 saying that PSU rules are applicable. As per DPE notification ,increase amount rule is implemented wef 1/1/2006 or 1/1/2007 depending on DA pattern .I s it justified? Then what is benefit of disinvestment ? GOI has 3 directors on board of BALCO,and they should take care of old employees after disinvestment.They should also visit area and talk to old employees about their conditions after disinvestment without looking at only balance sheet at Delhi.
    Now what will be the rule in BALCO,(BHARAT ALUMINIUM COMPANY LTD.) after disinvestment for old employees working since PSU days.

  54. Zephyrine Goveas says:

    Central Govt. employees are eligible for tax exemption on gratuity of 10 lakhs right from 1.1.2006. The CPSU employees were eligible for 10 lakh gratuity w.e.f. 1.1.2007. Those retired PSU employees from 1.1.2007 to 23.05.10 are unfortunate ones, they are not getting tax exemption on 6.5 lakhs. Is this justice? When the Govt. wastes money on NREGA from honest taxpayers contribution and there are massive corruption there, why can’t the tax exemption be given from retrospective effect? This is height of insensitivity.

  55. Sastry says:

    AFTER READING Sri.D.V.Raja Rao trailing e mail,I venture to substantiate here the simple reasons & need to extend the enhanced limit of 10 lakhs in Gratuity to BANKING sector retirees & resignees between 1.1.06 and 24.5.2010.

    (a).Every employee invariably becomes a B.P & Sugar patient by the time he reaches superannuation in Banking industry. Since these twin problems require life long treatment, the enhanced gratuity will help to purchase daily medicines. No employee will able to enter Forbes list of Billionaires with gratuity amount.Hope these two SIMPLE reasons will help the GOVT to take a quick decision…..

  56. D V RAJA RAO says:

    I substantiate here the need to extend the enhanced limit of 10 lakhs in Gratuity to other sectors as given to Govt Sector for retirees & resignees between 1.1.06 and 24.5.2010 as conveyed by Mr Pranab Ghosh on 2/7/10 & Mr S. SIVARAMAKRISHNAN on 26/5/2010 in their trailing e-mails.

    The self-benefiting law was drafted by Govt Officials and approved by Govt to benefit themselves and their colleagues/constituents, most of them go scot-free taking bribes. Whatever they are getting as enhanced Gratuity is addition to what they earn as bribes from Banks and other entities who are forced to pay bribes to get their jobs done by Govt Deptts.

    Whereas over 80% in PS Banks and Private Sector are honest, more than 80% are corrupt in Govt Deptts and still the Gratuity act is in favour of the Govt employees.

    As a Public Sector Bank Branch Manager I used to approach the Distt Level Officials for deposits for my branch.

    One official of Zilla Parishad Korba said: Mera Khyal Rakhna.

    Another employee of the same Zilla Parishad sent message through another branch manager of my bank to give gifts to him in order to get deposits from Zilla Panchayat, Korba

    An Govt official in Nellore Distt of Andhra Pradesh handling Water Shed Funds asked me Rs.10,000/- as bribe for the accounts opened in my rural branch by the beneficiaries (belonging to our branch’s service area) of Water Shed Funds.

    An accountant, Mr Gupta, of Municipal Commissioner’s Office Korba asked me Rs.7,000/- for his commissioner Mr Mishra in 2006-07.

    The officials(a chief Manager and a zonal manager) of my Public Sector Bank, stationed in Raipur, spoke to me (in Korba) over phone and said the following in the last week of March 2006 in reply to what I said to them : the Govt Officials are asking gifts in return for their Deptt’s deposits for my bank.

    The chief manager said : you give gifts.

    The zonal manager said: whatever you said to the chief manager, if you do not increase deposits, i will transfer you. This is nothing but a threat conveying consequences if I do not grow deposits whatever be the methods.

    Because such systems exist in Govt Deptts and PSUs, a customer of my Public Sector Bank, Mr Dinesh Kedia who runs a printing press in Korba and gets his jobs from Govt Deptts, said in my cabin(branch manager’s cabin of the PS Bank): “Imaandaar aadmi bekar aadmi hain. vo hamaara kamke nahi hain”. He also said on another occasion: even though his relative was a minister in Chhattisgarh State, he was not using the Minister’s influence but uses method of bribing to get Govt business because ministers come and go but they have to do business life long.

    Such Govt employees are getting the amended Gratuity benefit from back date whereas the rest of the uncorrupt employees of PSBs and Private Sector have to settle for the Gratuity wef 25.4.10.

    When the working in Govt Deptts and my ex-PS Bank is substandard, one cannot expect their planning and thinking any better.

    Govt should have some shame and immediately set right the anomaly that is created in the effective date for the Gratuity benefit amendment extended to the Govt employees and the PSBs & Private sector employees.

    Hope conscience prevails.

  57. Shyam Sarkar says:

    It is very shame for the democracy that some Medical Doctors of National Institute of Homeopathy,Kolkat(Medical Officers and Asst.Research Officers)are not getting their Dynamic ACP after 25 years service.Some states like Orisa, Keral, tamil Nadu and Delhi this Dynamic ACP already implemented in relatyion to the AYUSH’s Office order but not implemented in N.I.H.Some seniors doctors already retired from service with empty hand(without service beifit.)So if it is Implement in National Institute of Homeopathy then these doctors will hold their prestige and safe from moral degredation.

  58. Sastry says:

    The Monsoon session of Parliament is likely to start shortly. Are there any Hon.M.Ps interested in raising the issue and solving the problem. People who retired after 24.05.2010 have started expressing their sympathy to employees retired prior to 24.05.2010. See how policy decisions create divisions. See All banking solutions sight on this subject.

  59. om prakash kain says:

    I retired from Enginers India Ltd., Delhi, a Govt. of India Enterprise on 31.05.2009.I retired as Dy.GM.I was in CDA scale of pay at the time of my retirement.I have been paid Gratuity of Rs.3.5 Lakhs only.I have been sending e-mails to my ex-Employer to pay the remaining amount of Gratuity.But there is no response.Kindly advise whether I am entitled to get the balance gratuity or not.

  60. Pranab Ghosh says:

    It is quite unjustified and injustice to the senior citizens of India who have retired from PSU & Banks between 01/01/06 to 24/05/2010 if the enhancement of gratuity limit from 3.5 lakh to10 lakhs given to the central & state govt.retired employees is not paid to them.Hope Union govt. will review the sentiment of senior citizens and reconsider the effective date.

  61. CJG says:

    The ruling Govt. has shattered the hopes of the retired employees from 01.01.2006 to 23.05.2010. Is it true justice if you have 2 effective dates for the Gratuity Act i.e. 1.1.2006 for Central Govt. employees and the other as 24.05.2010 for the others including Central Govt. PSU’s? Aren’t we all equals in the eyes of God and so our Hon. President & PM who lead this country with our help should have thought of treating us all as EQUALS and made the effective date of Gratuity as 01.01.2006 for ALL. Please help us to serve the nation from further damage looking to the rise in prices of each and every commodity. Where is your aam aadmi agenda? Isnt this like wishful thinking? I dont think this blog will have much impact on the Govt. as they are here only for the rich and the greedy.

  62. G.Chandrasekaran says:

    What is the effective date for Gratuity Act 2010 for Co-operative urban bank employees?

  63. Amitabha Bhattacharya says:

    I have worked in GLAND PHARMA LIMITED,6-3-862,AMEERPET, HYDERABAD-500016 for more than 7 years but the company is not giving the gratuity amount,
    although in my appointment letter gratuity was mentioned .
    Pl suggest.

  64. HARISH v says:

    i took VRS on Medical ground and left the service on 15 th April 2010. While taking decision I have considered Gratuity enhancement of Rs.10 Lakhs. I am working in BEML , a PSU which is under the ministry of defence. While Giving approval DPE issued guidelines that the effective date revision will be 01.01.2007. It had been told to us by the management that it awaits amendement in act. Kindly let me know whether I am eligible for revised gratuity.

  65. Aaditya Bahuguna says:

    I do not know if writing on this site will be of any use. All of us who are sufferers are only talking to one another. The govt. has done the harm already by not revoking the date of implementation of 24 May 2010 for tax frr gratuity. We need to take our voice to parliament, MPs, IT department, Finance Ministry etc. which matter. Writing here does not serve any purpose.

  66. H.S.SETHI says:

    I would request the Hon’ble Prime Minister, WHO IS WELL-KNOWN FOR HIS HONESTY AND JUSTICE, to change the date of effect TO 01.01.2006 to maintain the parity at least for those public sector enterprises, Banks etc. who have adequate funds/provisions otherwise this will be treated as a great injustice to the Employees who retired between 01.01.2006 to 24.05.2010 and a severe jolt to their expectations as well.I beleive the Govt.would consider this sympathetically.

    H.S.SETHI

  67. H.S.SETHI says:

    I would request the Hon’ble Prime Minister WHO IS KNOWN FOR HIS HONESTY AND JUSTICE, to change the date of effect TO 01.01.2006 to maintain the parity at least for those public sector enterprises, Banks etc. who have adequate funds/provisions otherwise this will be treated as a great injustice to the Employees who retired between 01.01.2006 to 24.05.2010 and a severe jolt to their expectations as well.I beleive the Govt.would consider this sympathetically.

    H.S.SETHI

  68. H.S.SETHI says:

    I would request the Hon’ble Prime Minister WHO IS KNOWN FOR HIS HONESTY AND JUSTICE, to change the date of effect TO 01.01.2006 to maintain the parity at least for those public sector enterprises, Banks etc. who have adequate funds/provisions otherwise this will be treated as a great injustice to the Employees who retired between 01.01.2006 to 24.05.2010 and a severe jolt to their expectations as well.I beleive the Govt.would consider this sympathetically.
    convenience.
    H.S.SETHI

  69. subash gupta says:

    it shame on part of goverment of the people for people that with one sroke enhance the graduity from 3.5lac to 10lac wef 24-05-2010 instead of 1-01-2010, where is the elighten press ,who are busy in giving sensation new to sell thier new instead of right cause.

  70. J.C.KALRA says:

    ONGC employees retired up to the year 2006 are not getting any pension.This loss of 6.5 lakhs gratuity is a huge loss. Kindly do justice to us at the earliest.

  71. J.C.KALRA says:

    Hon.President, P.M, F.M should do justice to CPSUs employees like ONGC by amending Gratuity act 1972 from 01.01.2006 instead of 01.01.2007. Earlier also these employees were getting gratuity at par with central Govt employees whenever act was amended.ONGC employees should also get gratuity of 10 lakhs from 01.01.2006. DPE should be instructed to issue guidelines to CPSUs for payment of enhanced gratuity of 10 lakhs wef 01.01.2006

  72. sastry says:

    will the Hon.P.M and F.M or Govt read these mails from retired employees and take corrective steps to mitigate the problem?. What is the proper forum to take up the issue?. Can any body guide in this regard!

  73. dkriyer says:

    It is most unfortunate that we the retirees of Central GOVT. CPSU’s working under the guidelines of the DPE have been targetted for all the delays by the GOvt.for which retirees have to hang them selves for not granting the effective date of enhanced gratuity payment in line with central Govt. employees.CPSU retirees are in for a rude shock. The Govt. initially approved the 2nd pay revision on 26.11.2008 by approving the enhanced gratuity of Rs.10 lakhs w.e.f. 01.01.2007. What made them change their minds? If the 6th CPC gratuity is to be implemented from 01.01.2006, then why this step motherly treatment to us? Aren’t we paying the same taxes as them? Hon. PM and FM, Kindly look into this aspect as we have become easy targets and have lost out on Rs.6.5 lakhs which we were eagerly looking forward to.The President of India Dear Madam to kindly consider the apthy and agony of theese retirees and may issue Presidential orders if necessary

  74. CJG says:

    It is most unfortunate that we the retirees of Central GOVT. CPSU’s working under the guidelines of the DPE have come in for a rude shock. The Govt. initially approved the 2nd pay revision on 26.11.2008 by approving the enhanced gratuity of Rs.10 lakhs w.e.f. 01.01.2007. What made them change their minds? If the 6th CPC gratuity is to be implemented from 01.01.2006, then why this step motherly treatment to us? Aren’t we paying the same taxes as them? Hon. PM and FM, please look into this aspect as we have become easy targets and have lost out on Rs.6.5 lakhs which we were eagerly looking forward to.

  75. Manickam.y says:

    It is funny you are eligible for wage revision from 01/11/2007 and not eligible for increased gratuity if you retire between 01/11/07 and 23/05/10 even though the gratuity payments are worked out on the revised salary payable from 01/11/07.An employee retiring on 30/04/10 will get less amount (3.50lacs.) while the employee retiring on 30/05/10 will get 10lacs.You know bank employees retire on the last working day of the month

  76. H.M.Choubey says:

    All the respected law makers and authorities should take a revision of the effective date,
    since it deprives of equal rights to all concerned

  77. sovan kr.choudhury says:

    I would request the Hon’ble President,Hon’ble Prime Minister and the Hon’ble Finance Minister to change the date of effect…it should have been effective from 01.01.2006 to maintain the parity.
    Otherwise this will be treated as a
    great injustice to the Employees of
    PSU & BANKS those who retired between 01.01.2006 to 24.05.2010 and
    a severe jolt to their expectations as well.I beleive the Govt.would consider this sympathetically as per their own
    convenience.

  78. Neelam Khatri says:

    modification
    The effective date should be 01-01-2006

  79. Neelam Khatri says:

    The parliament has taken two years to pass the gratuity bill.The effective date is 24-05-2010.When we talk of equality then why disparity. It should be effective from 01-01-2006 for all.We request our hon”ble Prime Minister and Labour Minister to reconsider and change the effective date w.e.f 01-01-2010.

  80. manickam.rn says:

    There is discrimination on separation of emploment in respect of leave encashment of govt. employees and others on income-tax. This also needs to be addressed.

  81. manickam.rn says:

    There is discrimination in respect of leave encashment of govt. employees and others on income-tax. This also needs to be addressed.

  82. D C AHUJA says:

    Sir,
    It is a great injustice to the emplopyees of PSU & BANKS who retired between 1-1-2006 to 23-5-2010, as the date of implementation of Gratuity is w.e.f. 24-5-2010. The Govt. implemented 6th Pay Commission with a view to please the Govt. employees seeing the forthcoming election. It took Govt.more than two years to move the Gratuity Bill in Parliament Committee and then get the bill passed in Lok Sabha and Rajya Sabha. The bill was moved only when most of the Trade Unions met the Labour Minister, whereas it souled have been moved in the year 2008 itself after the implementation of 6th Pay Commission. It means the bill was delayed by more than two years deliberately. Most of the PSU and Banks are earning profit and they are the back bone of the country, whereas Govt. is paying salary to the employees with deficit budget every year. From this platform, WE ONCE AGAIN REQUEST THE HON’BLE PRESIDENT OF INDIA AS WELL AS TO THE HON’BLE PRIME MINISTER AND LABOUR MINISTER TO CHANGE THE DATE OF GRATUITY W.E.F. 1-1-2006 AND NOT FROM 24-5-2010 BEING THE RIGHT OF EQUIALITY AS MENTIONED IN OUR CONSTITUTION.

  83. SEKHAR says:

    Dear Sir,
    BALCO-BHARAT ALUMINIUM CO LTD. was a PSU which was disinvested in 2001 (51%) and now 49% is still with GOI .What rule is applicable to senior old employees who are working since PSU days.
    Here the company with 51 % share is paying gratuity as per actuals without ceiling limit and old employees are paid maxm.Rs.3.5 lakhs as per PSU. Now since the gratuity amount is enhanced to Rs.10lakhs for PSU wefrom 1/1/2007.Is it not applicable in BALCO wefrom 1/1/2007. Kindly guide and clarify

  84. R.Sengupta says:

    What is the effective date for
    the new amendment of gratuty i,e
    increase from 3.5lacs to 10lacs

  85. m.c.agrawal says:

    On Thu, 01 Jan 1970 05:30:00 +0530 wrote
    >Dear sir,
    It is wrong to say that judiciary can not in the matter of bill passed by parliament….it is the judiciary which is supreme and can set aside any bill which is against the law of land/constitutional remedies…..as the bill is against the fundamental right of equality since it does not give equal protection to all and the central govt employees have given different treatment than psu employees in date of effecting the gratuity amount….
    It is really shameful that the builders of nation/leaders have no disqualifications where as even for the post of clerk a graduate is the minimum qualification….all MPs and MLAs should have minimum degree of law as an eligibilty in educational qualification for fighting an election…and there should be the age of retirement also for them…when question of the bill of their salary /benefits after retirement comes they passes the bill according to their whims and fancies…same is the case with judiciary also….
    M.C.Agrawal

  86. C.S. Maurya says:

    The Gratuity and second option for pension is done only keeping in view the existing employees. No care is taken for who retired recently. This is a killing effect on these retirees who will be loosing about Rs.10 lacs on Pension and gratuity just for few months.For Elected Politicians even one day is enough to get pension for 40-50 years but when it comes for their employees number of ifs and buts will come.
    It is a high time to act, file a Case for both 56% PF for Pension and and Gratuity. If agrees pl. contact c.maurya@ymail.com

  87. sitansu says:

    IS IT FAIR ON THE PART OF GOVT. WHERE WE TALK OF EQUALITY ? GRATUITY ENHANCED FOR CEN.GOVT.EMPLOYEES WEF1/1/2006 & FOR PSU WEF 1/1/2007. WHY FOR OTHERS IT IS 24/5/2010.HOPE OUR HON.PM & FM WILL LOOK INTO THIS .IT IS TO MENTION HERE THAT TAX RATE/ SLAB IS SAME FOR ALL THEN WHY THIS DISPARITY IN GRATUITY

  88. sastry says:

    The salaried class after subprime crisis are put to terrible financial loss due to inflation, low interest rates on depoisits, erosion in the value of long term savings, increase in cost of education, health..etc. The effective date for amendment should be from 1.1.2006, so that the retired employees can have a decent burial in case of death.

  89. Siddharth Gupta says:

    Hi All,

    Recent Gratutity amendments are very unfair.
    I recan, we all should come togther and appeal against it.
    Drop me a email if you agree.
    gratutity@gmail.com

  90. p.p.rao says:

    an employee working in a psu
    after putting in 36 years retired on
    23-05-2010. he gets a maximum of rs
    3.5 lakhs only whereas an employee
    who is junior to the former by 4to5
    yesrs gets10 lakhs without i tax

    if he retires on24-05-2010 or afterwards. it is a great anomoly.
    it should be rectified by making act
    effective from 1.1.2006.one person with same rank and same service should have same gratuity

  91. rajesh says:

    gazette notification on amendment of gratuity act issued. effective date is 24th may 2010

  92. S.Ramaswamy says:

    Everywhere we talk about equality. Then why there is a diffrence between the limits of government and non government employees in respect of gratuity and other benefits and the income tax.

    Would sincerely request the Governement to look into this anamoly in the limits for exemption.

  93. S. SIVARAMAKRISHNAN says:

    GOVERNMENT IS THRIVING PURELY ON THE INCOME RAISED FROM THE PUBLIC. pUBLIC INCLUDE ALL PSU AND PRIVATE SECTOR EMPLOYEES. THEN WHY THIS PARTIAL DECISION BY THE GOVERNMENT OF INDIA? THE GOVERNMENT EMPLOYEES HAVE BEEN GIVEN THE BENEFIT BY AN ADMINISTRATIVE ORDER BY THE STROKE OF PEN. WHEN THE MATTER HAS COME TO THE LEVEL OF APPROVAL BY THE PARLIAMENT AND NOTIFICATION BY THE GOI, THE FINANCE MINISTRY HAS MADE FOUL PLAY? THIS SHOULD BE AMENDED IMMEDIATELY, AS EMPLOYEES IN GOVERNMENT OR PSU OR PRIVATE SECTOR ARE ALL WORKING FOR THE COMMON BENEFIT. THE PARTIAL DECISION SHOULD BE REVIEWED AND JUSTICE RENDERED BY THE FM / PM AND ALL THOSE CONCERNED WITHOUT DELAY. WITHOUT WORK FORCE NO ACTIVITY CAN BE CARRIED ON AND WITHOUT ACTIVITY THERE WILL BE NO CAPITAL FORMATION AND GROWTH OF THE COUNTRY. THIS THE POLITICIANS SHOULD REALISE.

  94. gurvinder singh says:

    Sir, I have got voluntry retirement from Central Bank of India on 30/09/2008.After 30 year service. I have got gratuity of Rs.3.50lac.Whether enhanced gratuity will be to me. how much will tax free

  95. CJG says:

    With pipe line gas prices now increasing, auto/taxi fares also increasing, food items and vege prices increasing even more, how does one expect a comman man to survive. The Govt. says aam aadmi when absolutely nothing is done to relieve them of their pain and suffering. IT benefits have also been passed on to higher wage earners by reducing their tax liability. We have to pay all our taxes in time but when its time for the Govt. to implement any of their pay/gratuity promises, they prefer to take their own time. Please look into our financial woes and implement all your packages including gratuity arrears for the retirees on a war footing.

  96. NAND LAL ARORA says:

    I retired from the services of Food Corporation of India on 31.3.2010 under CDA pattern. May any one please tell about the payment of gratuity to me i.e. whether the Gratuity would be paid under the amended gratuity act as Rs.10 lac without deduction of Income Tax. On 5.4.2010 I was paid Rs.3.5 lac as Gratuity. Some one told me that the effective date is 1.5.2010. This may also please be colnfirmed.

  97. Venkatraman says:

    I also need to know the date of effect of the ammendment for PSU bank employees. please reply.

  98. ch v narasaiah says:

    I retired from the services on 10.05.2010. whether the new gratuity amendment ceiling will apply to me or not. pl. arrange reply to my e mail. and the date of effect of the amendment.

  99. R.C.Khullar says:

    I retired from service in September, 2006 from Food Corporation of India. I was paid gratuity of Rs 3.50 lakhs. How much gratuity will be paid to me
    tell me the order so that i can ask my office to give me the rest. Will income tax will be deducted R.C.Khullar

  100. M.L.Soshi says:

    Accounting & Disclosure for Employee Benefits
    in Compliance of Accounting Standard (AS) 15 (revised 2005)
    ———————————

    • Accounting Standard (AS) 15 (revised 2005) is issued by the Institute of Chartered Accountants of India and is mandatory in nature (refer to the text of the standard for details).

    • The objective of the standard is to prescribed accounting and disclosure for employee benefits. The statement requires an enterprise to recognize:-

    o A liability when an employee has provided service in exchange for employee benefits to be paid in the future; and
    o An expense when the enterprise consumes the economic benefit arising from service provided by an employee in exchange for employee benefits.

    • Employee Benefits fall under 2 type of plans:- Defined Contribution Plans and Defined Benefit Plans.

    • Employee Benefits are further classified as:-

    o Short Term Employee Benefits
    o Post Employment Benefits such as Gratuity, Pension, Other Retirement Benefits, Post-Employment Life Insurance and Post-Employment Medial Care;
    o Other Long-Term Employee Benefits, including long-service leave or sabbatical leave, jubilee or other long-service benefits, long-term disability benefits and, if they are not payable wholly within twelve months after the end of the period, profit-sharing, bonuses and deferred compensation; and
    o Termination Benefits

    Because each category identified above has different characteristics, this statement establishes separate requirements for each category.

    • Accounting and Disclosure requirements for Defined Benefit Plans need the skill of an Actuary.

    • Most common Defined Benefits relevant in the Indian context which need the services of an actuary for compliance of the accounting standard, whilst finalizing the financial statements are:-

    o Gratuity
    o Compensated Absences (Earned Leave)
    o Compensated Absences (Sick Leave)
    o Post Retirement Medical Benefits
    o Superannuation (Pension Benefits)

    • Frequent items to be conversant with the subject are:-

    o Projected Unit Credit Method (PUC)
    o Present Value of Obligation
    o Current Service Cost
    o Interest Cost
    o Actuarial Gains/Losses
    o Employer’s Expense
    o Experience Adjustment on Plan Liabilities
    o Experience Adjustment on Plan Assets

    • *We provide actuarial services for compliance of the standard. We have expertise, experience and in-depth knowledge in this field. We have a large clientele spread in almost all sectors of the economy in Public and Private Sectors including Multinational Companies, Limited Companies, Schools, Hospitals, Banks, Electricity/Power Companies etc. etc.

    • Our services are also available for compliance of :-

    o International Accounting Standard IAS (19) – IFRS
    o Under US GAAP
    Please mention reference of this post to avail benefits/resolution of your queries.

  101. r k bhateja says:

    sir, is ther any change in the formula for calculation of gratuity i.e. is there any increase in the no of days per year for calculation of gratuity
    thanks

  102. CJG says:

    Will the Govt. please publish the enhanced Gratuity Notification at least now as the wait is far too long and the implementation of the same will take time too. We are retired Central Govt. PSU employees and eagerly look forward to some relief at the earliest.

  103. Partha Datta says:

    The date of effect for payment of enhanced gratuity in case of Central Govt. employees is 01.01.2006. We presume but please confirm whether the same date of effect will be applicable for PSU Bank employees.

  104. Deepak Kapur says:

    I retired from Punjab National Bank on 31.05.2008 after serving the bank for 37 years. Will the enhanced Gratuity limit of Rs.10 lakh be applicable in my case? Will it be Tax Free.
    Gratuity is payable to PNB officers as per their service regulations also. Gratuity under the Act or the Regulations is payable, whichever being higher.
    I got Rs.4.25 lakh out of which amount beyond 3.50 lakh was taxable.
    If I calculate gratuity under the Act it comes to more than Rs.10 lakh

  105. shashikant gondhali says:

    Respected Sir,
    Please let me know this amendment to the gratuity act is eligible to coop banks? If yes than this raised amount is whether taxable or non taxable?
    Awaiting for your reply.

    Thanking you.

  106. H C Chawla says:

    I understand that LOK SABHA has also given approval for enh
    ancement of gratuity from 3.5 to 10.00 lacs to Govt. emp including Public Sec banks through a local News paper but date of effect to the issue is not mentioned anywhere. Please confirm if the date of effect has been finally decided by the Labour Ministry from where it is to be finalied. Thanks

  107. Ramdass.S says:

    Pleased to note that the Parliament has accorded its sanction to raise the Gratuity limit from Rs.3.5 lacs to Rs.10 lacs by passing the amendment bill. While discussion on the amendment bill, one M.P. has aprised the minister to give effect the amendment from 2006 but the Minister of Labour did not agree to it. When the Central Govt.employees are already getting higher gratuity even from 2006, why the Central and State PSUs/Boards who are following the Payment of Gratuity Act should be deprived from availing the enhanced gratuity from 2006? Will the Central Govt.once again reconsider the issue that is to be by and large benefitted the retirees even from the year 2006.

  108. RAMESH KUMAR MISHRA says:

    I HAVE RETIRED FROM A NATIONALISED BANK ON 30.09.2009.AM I ELIGIBLE TO RECEIVE Rs.650000/- as remaining amount of gratuity since I recd only 3.50 lacs on my retirement.Is the amendment in Gratuity Act applicable to the bank retirees like me?

  109. kamal setia says:

    I was retired on 30.11.2009 from Bank of India and was paid gratuity as per bank’s rules and the maximum ceiling was rs.3.5 lacs. Please advise me as to from which date the aforesaid amendment in gratuity will be taken into account.

  110. i have retired on 30-9-09 and gratuity of 10 lacs has been paid after deducting tax for above 3.5 lacs of old limit.the effective date may please be given so that refund can be claimed with return.

  111. HARISH says:

    I retired in May 2009, Will I get enhanced Gratuity.

  112. s.k. gandhi says:

    i retired from PSU Bank in january 2010 Whether i am eligible for enhanced gratuty

  113. CBSHRIVASTAVA says:

    I am going to retire on 21.05.2010.from private company.
    whether I am eligible to raised limit of gratuty ?From which date this has become effective ?
    CBSHRIVASTAVA

  114. CJG says:

    Prices are hurting, medical bills keep mounting. Yet, there is no sign of the Gratuity arrears which was recently raised to Rs.10 lakhs being disbursed to the retired employees. We all eagerly look forward to receiving these arrears as we are really hard hit by this type of an inflation which we have never seen before. Please help.

  115. anita venunath says:

    Sir,

    Would like to know the effective date of this Amended Gratuity Act, 2010.

    Regards,
    anita

  116. mnl Raha says:

    Please confirms whether the amendments to gratuity Act 1972 has been signed by the President of India.

    Also confirm whether amendment is applicable retrospectively from 1.1.2006

  117. Srinivasan says:

    Has the Income Tax Exemption Limit increased to 10 Lakhs? I was given to understand that this notification will come after parliament session in April.

  118. mallikarjun says:

    dear sir

    The gratuity amount payable will be basic or gross salary (15days every year)

    Rgds

  119. Sandeep says:

    HI This is sandeep rai,
    I have completed 4 year 7 months and 10 days in my company . suppose if i m
    leaving the company then what be abt gratuaty.
    Thanks
    Sandeep

  120. satish kumar says:

    i retired from food corporation of india on 30.06.2009 drawing salary under cda pattern but not paid gratuity enhanced to rs. 10 lakhs by the sixth pay cmmission.let me know the under the recent amendment of gatuity act will ireceive the gatuity as per revised ceiling.

  121. Deepak says:

    On 4th March 2010 Govt. Cabinet approved an Amendment to the Gratuity Act to raise the Gratuity ceiling amount from Rs.3.5 Lacs to Rs.10 Lacs for Employees working in Private Sector.

    When the Bill to Amend the Act will now go to Parliament for approval and notification / Amendment to Gratuity Act and Amendment to Income Tax Law for Tax Excemption of Gratuity Amount upto Rs.10 Lacs.

    Will this be done With Effect From 1st April 2010. Please confirm.

  122. J P Likhite says:

    To, all concerned,
    Govt should ammend ceiling by ordinance immidietly.

  123. Ashok Kumar Talwar says:

    The Sixth Pay Commission had given recommendations for Central Govt. employees, which were accepted in toto by many statutory bodies (quasi-govt.) under different ministries of Govt. of India. However, on enhanced gratuity the Income tax exemption limit has not been implemented by some of the statutory bodies like Bureau of Indian Standards (BIS) and they have deducted TDS even on this retirement benefit.

    To protect the genuine interests of such employees, Ministry of Finance should issue a notification, which allows refund of TDS so deducted in the next Income tax return. Immediate action needs to be taken.

  124. mahesh pareek says:

    Dear all

    Pls note that this amendment approved only by cabinet , now parliament will pass and then the president will give her assent then it become part of the act .

    So you all wait till its notification issued by central govt.

    Further it is most important that whether govt will give this amendment effect retrospective or prospective . if retrospective then govt will notified the date from this amendment will enforce . so i request all of you wait till notification of date if you all come under this date then will entitled for benift . If govt notified from prospective date then retired employees will not get benifit . So Imp is the date ?
    THANKS
    With Best compliments
    MAHESH PAREEK

  125. S.Bhanusekhar says:

    Dear sir,
    I retired from a statutory corporation created under act of parliament. we are covered under DCRG Rules for gratuity purpose.We do not get pension.We are covered under the 6CPC.our gratuity amount was enhanced from 3.5 lakhs to 10 lakhs. while paying our gratuity arrears tax was deducted for the excess amount.on the plea that we are not Cent Govt or State Govt orgns. In view of the increase now made by GOI can i seek refund of tax paid on gratuity in my tax returns for AY2010-11.I received the Gratuity amount in FY2001-10.Pl advise.
    thanks
    S.Bhanusekhar

  126. G Venugopal says:

    The pay revision of Central PSUs has been made effective from 1-1-2007 which included gratuity upto the enhanced limit of 10 lakhs. Many PSus have already paid the gratuity but after deducting Income Tax for the amount in excess of the old limit of Rs.3.5 lakhs. When gratuity upto Rs.10 lakhs becomes taxfree, will these retired employees get the Income Tax refunded to them?

  127. kanakeswara rao. sundara says:

    dear sir,
    i am retired on 10-04-2008 from Hindustan Zinc Ltd,.what recently announced the govt of India gratuity payment enhance from 3.50 to 10 lac. it is applicable me are not and what is the back date. please be reply.
    regards,
    kanakeswara rao.s

  128. M.B.POONACHA says:

    DEAR SIR,
    I WAS WORKING IN A LARGE PVT FACTORY FOR 34 YEARS. I HAVE RETIRED ON FEBRUARY 2009. I HAVE GOT RS 3-50 LACS AS GRATUITY. AM I ELIGIBLE FOR BALANCE 6.50 LACS
    AS PER THE CABINET APPROVED AMENDMENT OF PAYMENT OF GRATUITY ACT 1972 ,AMENDED ON 5-3-2010 FOR RS 10.00 LACS.
    PLEASE CONFIRM TO MY E MAIL ID.
    THANKS , M.B.POONACHA.

  129. shailesh shah says:

    I retired from Govt.formed Agency recently in Jan.2010. May you please guide me if I would be eligible for a higher amount of gratuity payment over Rs.3.5 lakhs (paid Rs.3.5 lakhs) under this revised amendment? or any other amendment to this rule?

  130. Megha Thakur says:

    What if any employer ( Pvt Ltd Co) do not provide & do not pay Gratuity to any employee?

  131. Juzer Rangwala says:

    There definitely has to be an amendment in the Income Tax Act and the Rules to allow the upper limit of the amended gratuity under the Payment of Gratuity Act, 1972 as exempt from tax else the enhancement of eligibility will, in many cases, not be attractive at all.

  132. D C BINJOLA says:

    Sir

    Greetings.

    I took pre – mature retirement from SBI in August 2008 and was paid gratuity of Rs. 3.50 lakhs. May you please guide me if I would be eligible for a higher amount under this or any other amendment to the rules.

    Thanks & Warm Regards.

    D C Binjola

  133. CA Sandeep Kanoi says:

    No change in Income Tax exemption limit.

  134. CA Sandeep Kanoi says:

    No. Exemption will be governed by Income Tax Provisions.

  135. Surendran says:

    Dear sir,

    Happy to read the news about the
    Cabinet decision regaarding the
    ceiling of gratuity exemption from Rs.3.5 Lakh to Rs.10 Lakh.
    It will be really very helpful to the employees of Private Sector
    like me.
    Regds
    All India Documentation Manager.
    CSAV Group Agencies India P.Ltd.

  136. Dr.AK.Saxena says:

    will the 10 lakh of gratuity amount be taxa free now?

  137. Dr.AK.Saxena says:

    now the ceiling for gratuity is being raised from 3.5 laks to 10 laks, will it be taxfree income or taxable?

  138. Ishwarbhai N. Gandhi says:

    Dear Sir,
    We are very happy to note the action initiated by GOVT to amend Gratuity Act.
    As we already stated our geniune complaint, GOVT is not considering the grievances of DEFENCE Public Sector Employees with CDA payment terms who are Retired from services after 01/01/2006.These PSUs (69 in nos. ) have implemented pay revision as per 6th PAY COMMISSION, but not ENHENCED Gratuity as Recommended by 6th HPPC Report.
    You may see that one of the PSUS following CDA payment to their Employees ,like — Nuclear Power Corporation Of India Ltd has already implimented Enhencement Of Gratuity i.s. upto Rs 10 /- Lakhs with effect from 01/01/2006 to their Employees.
    Then , why defence dept is not advising the PSUs under their control to impliment the Recommendation of Enhencement of Gratuity from Rs 3/- Lakhs to Rs 10/- Lakhs.

    Retired Additional General Manager , Mazagon Dock Ltd, Mumbai 400010

  139. Ishwarbhai N. Gandhi says:

    Dear Sir,
    We are very happy to note the action initiated by GOVT to amend Gratuity Act.
    As we already stated our geniune complaint, GOVT is not considering the grievances of DEFENCE Public Sector Employees with CDA payment terms who are Retired from services after 01/01/2006.These PSUs (69 in nos. ) have implemented pay revision as per 6th PAY COMMISSION, but not ENHENCED Gratuity as Recommended by 6th HPPC Report.
    You may see that one of the PSUS following CDA payment to their Employees ,like — Nuclear Power Corporation Of India Ltd has already implimented Enhencement Of Gratuity i.s. upto Rs 10 /- Lakhs with effect from 01/01/2006 to their Employees.
    Then , why defence dept is not advising the PSUs under their control to impliment the Recommendation of Enhencement of Gratuity from Rs 3/- Lakhs to Rs 10/- Lakhs.
    Why the Depts Of Govt Of India treat all Employees of PSUs having CDA payment terms are alike?
    Retired Additional General Manager , Mazagon Dock Ltd, Mumbai 400010

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