MINISTRY OF LAW AND JUSTICE
(Legislative Department)

New Delhi, the 29th March, 2018

The following Act of Parliament received the assent of the President on the 28th March, 2018, and is hereby published for general information:—

THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2018

NO. 12 OF 2018

[28th March, 2018.]

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

BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—

1. Short title and commencement.

(1) This Act may be called the Payment of Gratuity (Amendment) Act, 2018.

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

2. Amendment of section 2.

In the Payment of Gratuity Act, 1972 (hereinafter referred to as the principal Act), in section 2, for clause (k), the following clause shall be substituted, namely:—

(k) “notification” means a notification published in the Official Gazette and the expression “notified” shall be construed accordingly;’.

3. Amendment of section 2A.

In section 2A of the principal Act, in sub-section (2), in the Explanation, in clause (iv), for the words “twelve weeks”, the words “such period as may be notified by the Central Government from time to time” shall be substituted.

4. Amendment of section 4.

In section 4 of the principal Act, in sub-section (3), for the words “ten lakh rupees”, the words “such amount as may be notified by the Central Government from time to time” shall be substituted.

G. NARAYANA RAJU,

Secretary to the Govt. of India.

List of Recent Gratuity Related Notification

Title Notification No. Date
Payment of Gratuity (Amendment) Act, 2018 applicable from 29.03.2018 Notification No. S.O. 1419(E). 29/03/2018
Govt. increases maximum gratuity limit to Rs. 20 Lakhs Notification No. S.O. 1420 (E). 29/03/2018
Govt notifies maximum maternity leave of 26 weeks for Gratuity Notification No. S.O. 1421 (E) 29/03/2018
President assents Payment of Gratuity (Amendment) Act, 2018 NO. 12 OF 2018 29/03/2018

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11 responses to “President assents Payment of Gratuity (Amendment) Act, 2018”

  1. kk das says:

    When 20 lacs gratuity is already being paid from 1.1.16 then the effective date is self explanatory. Only 10 to 20 lacs was needed to be declared.

  2. CHANDRA KANT KALOUNI says:

    IT SHOULD BE EFFECTIVE FORM 1-1-2016 AS PROPOSED .

  3. MDS SASTRY says:

    What is applicable date of increased gratuity as per amended Act to central public sector employees ?

  4. Gulshan says:

    The govt decision to implement it from 29.3.18 instead of 1.1.18 is highly unjustified and in costitutional as some are allowed tax free rs 20.lacs since 1.1.16 some since 29.3.18. Are they not Indians who retired between 1.1.16 to 28.3.18. Is it democracy or clear cut demoncracy.

  5. VINAYAKA says:

    PLEASE CLARIFY WHICH IS THE EFFECTIVE DATE FOR GOVT EMPLOYEES ?

  6. Srinivas says:

    Why does the government always give a step motherly treatment to private employees? If I understand, the govt employees are eligible for 20 lakh limit from 1st Jan 2016. Then why should private employees not get the same. First of all, it would have avoided all these unnecessary complications if it had not restricted the benefit to govt employees while making the amendment way back in 2016 itself. Is this not changeable in court? Was it intended or someone goofed up while writing the notification in 2016, to specify it for govt employees only?

  7. Budibasappa says:

    As per govt note and approved by parliament effective date of gratuity payable is from 1/1/2016 were as Gazzetta notification effect date is 29/3/2018 please clarify which one is correct

  8. Kumar says:

    For public sector employees it was done retrospectively, but for private sector employees it seems to be effective only prospectively. Why this step motherly treatment?

  9. Rachana says:

    Dear Sir,

    please also let us know the gratuity for private employees where employees are less then 10 in a private organisation, but are serving the cpmpany for the past 20+ years

    Thanks,

  10. R satyanarayana says:

    While proposing the bill, the ceiling of 20 lakh. Is applicable from 1.1.16. Where as in the amended act it is applicable from 29.3.18. Hence it further requires clarification from govt.

  11. Madan Mohan Varshney says:

    What is implementation date for gratuity amendment bill 2018 for private employee?

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