A bill to raise the ceiling of gratuity for employees to Rs 10 lakh from Rs 3.5 lakh was passed by the Lok Sabha without discussion today. The House, which witnessed an opposition furore over the 2G spectrum “scam” and reports about alleged involvement of a central minister in an illegal arms deal, also adopted the Employees’ State Insurance (Amendment) Bill 2009 without any debate.

The Payment of Gratuity (Amendment) Bill 2010, introduced by Minister of State for Labour Harish Rawat last month, was passed by a voice vote as AIADMK and some CPI(M) members trooped into the well raising slogans.

The bill seeks to amend the Gratuity Act to enhance the amount of gratuity payable to an employee from Rs 3.5 lakh to Rs 10 lakh. The legislation was brought following demands from trade unions and others to remove the ceiling or increase the maximum payable amount, which was fixed in 1997.

The House also passed the Employees’ State Insurance (Amendment) Bill 2009 to provide for medicare to unorganised sector workers, especially those below the poverty line.

The bill, proposes that the Employees’ State Insurance Corporation (ESIC) should participate in the Rashtriya Swasthya Bima Yojana to cover BPL workers in the unorganised sector.

The Statement of Objects and Reasons of the bill said it also proposed to increase the age limit of dependents from 18 to 21 years and provide for claims for accidents occurring at work or while going to work.

The legislation was brought to the House in 2008 to replace an ordinance and was then sent to the concerned parliamentary standing committee.

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

More Under Corporate Law

0 Comments

  1. vikash kumar says:

    sir   my father retiers on 30 april 2007   he expires on 22december 10  at the time of retierment he got 3.5 lacs as gratuity  my mother getting family pension from the date of my father expires.  after that my mother pension is revised on 30-4 11 and she recived 216676 lacs as gratuity arrear on  24 -9 -11 also that my mother get p.r.c. arear of papa 19653 thousend on 21-6 -11 and 48285 thousend on 24 – 9 -11  . sir  gratutity arear and prc arear are taxable .kindly help me so we can get examption on tax of gratutity arear and prc arear

        my mother gets first family oension on 31-3-2011  the amount was 30261thousand out of which 15689thousend is papa pension from 1-12-10 to 21-12 10 and family pension 14208 thousand from 22-12-10 to 28-2 11.
     
    afterthat from april 2011 to februaru 2012 she got 

    1. gratuity arear – 216676 lacs
    2. papa prc arear- 48285 thousand
    3. medicall allowances- 3800thousand
    4 d.a areear- 5791thousend
    5. family pension – 314260 lacs
           sir kindly help me how can i got examption of tax on gratuity arear and prc arear

  2. RAVINDRA D PATHAK says:

    YES WE ALL SHOULD BE TOTALY AGREE WITH THE MOST APPROPRIATE N JUSTIFIED VERSION OF DEAR MR VIMAL AND URGE EACH N EVERY TO TAKE THE MATTER TO THE CONCERNED MINISRTRY FOR IMMEDIATE AMMENDMENT OF ENFORCEMENT WEF 01`/01/2010 IT SELF. NOW THROUGH THIS PLATFORM I WOULD ALSO LIKE TO URGE FOR JUSTIFIED FOLLOWUP TO INCREASE EPF LIMIT ALSO FROM 6500/- TO THAT OF RS 25000/- WHICH IS PRIME NEED OF TODAY SCENERIO.-R5AVINDRA D PATHAK SH22 VIJAYNAGAR A B ROAD INDORE M P 452010 CELL 09179314522 094259123903

  3. vimal says:

    IT IS REALLY UNJUSTIFIED ON THE PART OF GOVT OF INDIA TO PAY THE ENHANCED GRATUITY TO EMPLOYEES FROM THREE DIFFERENT DATES.THIS IS AGAINST THE LAW OF EQUALITY. ON MANY OCCASSION THE LABOUR MINISTER HAS SAID EARLIER THAT HE WANTS TO ENHANCE THE GRATUITY LIMIT OF RS. 10 LAC FROM RETROSPECTIVE DATE AT PAR WITH THE CENTRAL GOVT. EMPLOYEES. ONCE AGAIN HE ASSURED TO THE PRESS THAT HE WILL LOOK INTO THE MATTER AND TALK TO THE EMPLOYERS IN THIS REGARD. SINCE IT IS A WELFARE STEP FOR THE LABOURS OF THE COUNTRY IT IS REQUESTED THROUGH THIS THAT HE SHOULD AMEND THE DATE OF IMPLEMENTATION OF GRATUITY ACT 2010 FROM 01/01/2006 INSTEAD O 24/05/2010

  4. Murali says:

    Please suggest on the below mentioned queries.

    1. Is this ammendment compulsorily to be followed by all the employees.
    2. Can the employer still opt for 3.5 lac.

  5. M.V.K.Murthy says:

    Sir, I was retired on 31st August 2009 from a private company and I got 3.5 lac as gratuity.can you please tell me wheather I am eligible to get 10lacs as gratuity?

  6. Dilip Kumar Das says:

    I understand that The Payment of Gratuity Act (amendment 2010)likely to be effective from 1st.January 2006.Kindly confirm.

  7. Deepak Kapur says:

    Is enhanced gratuity limit applicable to Public Sector Banks viz, Punjab National Bank? If yes, from which date? i.e. employees retired say in 2008 0r 2009. Will it be tax free? Kindly email your reply. Thanks.

  8. Dilip Kumar Das says:

    I retired from service on 31.1.2007.Kindly let me know whether I am eligible to get benefit due to amendment of the ceiling raised from Rs.3.5lakhs to Rs.10lakhs. in The Payment of Gratuity Act.Kindly e-mail the amendment act.

  9. Chidambar Samant says:

    Along with the amendments of The Pyment of Gratuity Act, 1972 (i.e to hike gratuity ceiling to Rs. 10 lakh from Rs. 3.50 Lakh.)the clarification of CBDT Delhi regarding section 10 (10) (2) & (3) of The Income tax Act, 1961 is very necessary. Then only the concerned employees will receive proper benefit.

  10. Chidambar Samant says:

    This amendment is not beneficail to employees having low salaries. This amendment is beneficial to employees having high salaries because they will get more I Tax free amount. Because the CBDT Clarification on I Tax section 10 (10) (2) & (3) is not issued by CBDT. Since last 2 years i have in contact with CBDT Delhi & our FM & PM But yet no reply from any body.I you want details on this please mail me. chidambarsamant@gmail.com

  11. Chidambar Samant says:

    It is good. But along with this the Govt. must issue the CBDT Clarification on section 10 (10) (2) & (3) of the Income Tax Act, 1961. It is very essential. Because as per the gratuity act the denominator is 26.It is since 1987. Whereas the denominator used in 10(10) (3) the denominator is 30 & in this section last 10 monts avg. salary is used. This is not fare.

  12. saseendran trivandram says:

    Is the rule automatically applicable to all employees of state psus ?Is it mandatory for the employer to pay the enhanced amount?

  13. kkj says:

    Increase in ceiling limit of gratuity from Rs.3.5 lakhs to 10 Lakhs is appreciable step at the same time the ceiling of EPF Limit is to be increased from Rs.6500/- to Equal to ESIC Limit at least. As the same is under consideration since long period and committee’s had already been formed instead its a genuine request of a layman which is to be considered affirmatively.

  14. Bhubaneswar Padhy says:

    the amendment act in gratutity 2010 i.e. Rs.10 lacs in place of Rs.3.5 lacs will be effective from which date ? Please reply.

Leave a Comment

Your email address will not be published. Required fields are marked *