Payment of Gratuity (Amendment) Act, 2010 (No. 15 of 2010), dated 17-5-2010

An Act further to amend the Payment of Gratuity Act, 1972.

Be it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:-

Short title and commencement.

  1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2010.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Amendment of section 4 of Act 39 of 1972.

2. In section 4 of the Payment of Gratuity Act, 1972, in sub-section (3), for the words “three lakhs and fifty thousand rupees”, the words “ten lakh rupees” shall be substituted.

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  1. CJG says:

    It’s greatly disappointing as Board Level/Below Board Level Officers have got their enhanced gratuity arrears leaving out the Supervisors of Central Govt. PSU’s entirely. The DPE of 26.11.2008 a Nodal authority of Ministry of Heavy Industries clearly stated that Non Unionised Supervisors are also to be given enhanced gratuity wef 01.01.2007. Dont know why this “U” turn in case of Central Govt. PSU Supervisors. Can anyone help us to push this matter forward as it grossly violates the notifications of the DPE?

  2. CJG says:

    I retired from a CPSU namely Mazagon Docks Ltd. Mumbai on 31.12.2008 as a Supervisor. Many PSU’s have enhanced their gratuity to Rs.10 lakhs w.e.f. 01.01.2007 and have even paid their retirees whereas we still eagerly await to receive the balance arrears of Rs.6.5 lakhs minus the taxation of almost about Rs.2 lakhs. Can anyone help in this regard?

  3. S. SIVARAMAKRISHNAN says:

    WHY THIS PARTISAN ATTITUDE FOR THE FINANCE MINISTER? THEPRIME MINISTER SHOULD REVIEW THIS ANOMALY AND MAKE THE ENHANCEMENT IN GRATUITY APPLICABLE TO ALL THOSE RETIRESS FROM THE PRIVATE AND PUBLIC SECTOR ALSO AS MADE APPLICABLE TO THE GOVERNMENT SERVANTS FROM THE 1ST JANUARY 2006. WHEN THE MPs HAVE GOT FAT REVISION IN THEIR ENTITLEMENTS WHY NOT THE POOR RETIREES GET THE ENHANCED PORTION OF ELIGIBLE GRATUITY?

  4. 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? Are’nt 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.

  5. v a kamath says:

    Dear Sir,
    I have retired under VRS on 17/03/2010 and was paid my gratuity under our Banks Service Regulation as the amount was higher as per Service Regulation than Gratuity Act.

    As our wage revision is pending and as such my pay will be refixed, I am eligible for the revised grauity amount, calculated as per Service Regulation or Gratuity Act. When I was retiree on 17/03/2010 eventhough the amount as per the Gratuity Act was more as there was a limit of Rs.3050 lacs under the act I was paid as per Service Regulation. In view of chaged cirucmstance of enhancing the cieling to Rs.10.00lacs whether I am eligible for the revised gratuity as per the amended Gratuity Act. Please clarify.

  6. Bhubaneswar Padhy says:

    copy of the notification on Gratuity (Amendment) Act, 2010 18.05.2010 (Extraordinary act 20; Part II; Section I) … ?

  7. pgshastry says:

    when exemption of I.T upto 10lac will be notified in gazzete as passed in both houses in respect of gratuity bill 2010? p gopal shastry

  8. KA Salian says:

    Hi, Mr Sushil Gupta – The bill does not have a effective date which will be reflected in the gazette notification. Can you please post the notification if the same has been issued.

  9. Sushil Gupta says:

    The payment of Gratuity (Amendment) Act, 2010 has already been published in the official Gazette on 18.05.2010 (Extraordinary – 20; Part II; Section I)

  10. KA Salian says:

    It looks that the bill has got president’s assent on 17.5.2010 and now the labour ministry shall issue the notification which will have its effective date. Request to “TAXGURU” to post the notification as soon as the same is issued.

  11. m c agrawal says:

    pls tell me whether enhanced gratuity as per amendment act for 2010 is applicable from back date? if yes -what is that date? further exemption of enhanced gratuity in income tax from which date?
    M.C.Agrawal

  12. Ramesh Chandra says:

    As a section of govt staff has already been given the benefit of enhanced gratuity of 10 lacs as per the 6th pay commission revision of salaries, it should be
    extended to other psu staff from the same date. Amendment in Gratuity Act was delayed for various reasons, and that should not be the reason to cause discrimination among different sections of staff working for the
    govt of the same country. That will only mean arbitrariness and
    will be contested in the Courts.
    We trust that Govt will not allow
    such arbitrary decision in giving
    effect to the amended Act.

  13. Virendrakumar says:

    Gratuity Exemption up to 10 lakhs is passed by both the houses and gratuity act is also amended. Gazzate nofication is still not issued. Can any one say when it will be published in gazzate? and what will be date of effect?

  14. Deepak Bharatwal says:

    Minister has already clarified in his opening remarks that it cannot be given retrospectively and it will be only from a prospective date. Hence, there are no chances to get it with back date unless the Unions play their genuine role.

  15. sampath says:

    The said provisions will only be effective the date published in Official gazette.It should have been effective from a certain cut off date ,giving the true benefits to people at large.Though cut off date is debatable it should be such a date that it should cover majority people recieving the terminal benefits (post revision) after sixth pay commision revision.

  16. D C Binjola says:

    Sir Thanks for a news that will cheer many people. I retired from SBI on 31.08.2008 and want to know if this change will be of any help to me. Please advise if you can find the answer.

  17. A K TALWAR says:

    No mention about IT exemption limit.Those who received enhanced amount after implementation of sixth pay commission in September 2008 should get IT exemption retrospectively. In any case, the payment was made to eligible employees covered by pay commission, during 2009-10. Therefore enhancing IT exemption limit retrospectively is very much needed

  18. KSS says:

    This says ”
    It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint”…. What is the effective date? can u pl post the gazette notification ??

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