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Payment of Gratuity (Amendment) act, 2009 – amendment in section 2 and insertion of section 13A

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

Be it enacted by Parliament in the Sixtieth 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, 2009.

(2) It shall be deemed to have come into force on the 3rd day of April, 1997.

2. In the Payment of Gratuity Act, 1972 (39 of 1972) (hereinafter referred to as ‘the principal Act’), in section 2, for clause (e), the following clause shall be substituted, namely:—

‘(e) “employee” means any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop or other establishment to which this Act applies, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity;’.

3. After section 13 of the principal Act, the following section shall be inserted, namely:—

“13A. Validation of payment of gratuity – Notwithstanding anything contained in any judgment, decree or order of any court, for the period commencing on and from the 3rd day of April, 1997 and ending on the day on which the Payment of Gratuity (Amendment) Act, 2009, receives the assent of the President, the gratuity shall be payable to an employee in pursuance of the notification of the Government of India in the Ministry of Labour and Employment vide number S.O. 1080, dated the 3rd day of April, 1997 and the said notification shall be valid and shall be deemed always to have been valid as if the Payment of Gratuity (Amendment) Act, 2009 had been in force at all material times and the gratuity shall be payable accordingly:

Provided that nothing contained in this section shall extend, or be construed to extend, to affect any person with any punishment or penalty whatsoever by reason of the non-payment by him of the gratuity during the period specified in this section which shall become due in pursuance of the said notification.”.

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

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126 Comments

  1. ranganatha Iyer says:

    1. after knowing that the effective date of henancement of gratuity payment is from 24.05.2010 allmost all section of employees/officers of PSU’s , Banking and others are upset over the effective date given by the Govt.The great injustice done to the small section of the people who are in great need of money due to very price rise of commodities,lower income from the retirement benefits,to take care of medical necessities of self and dependents,other social requirements,Governemnt should rethink on the effective date and provide good support for the retirees to lead a good life Instead of neglecting them.It is very difficult to survive under the present hike in prices in every walk of life.Govt. Should not treat the retirees as second citizens once if they are not part of the organisation forgetting the hard work put in in upliftment of the organistion.The Govt should immediately consider for re-instating in the gazzette
    the effective date to be given as 1.01.2006 by Presidential order if necessarry to stop agony of theese unfortunate section of the workers.
    More so, there is no justification
    in giving effective date as 24.05.2010 considering efffective date for central as 1.1.2006 and for others as 24.5.2010.
    Hope The Govt. of India do good to the retirees whose latent money
    of there hard work is seen in reality.
    On behalf of all theese work force request PM,FM And all MPs to support the cause of theese people and keep in good faith about the Govt. and the elected MPs and Rajya Sabha members.

  2. ranganatha iyer says:

    after knowing that the effective date of henancement of gratuity payment is from 24.05.2010 allmost all section of employees/officers of PSU’s , Banking and others are upset over the effective date given by the Govt.The great injustice done to the small section of the people who are in great need of money due to very price rise of commodities,lower income from the retirement benefits,to take care of medical necessities of self and dependents,other social requirements,Governemnt should rethink on the effective date and provide good support for the retirees to lead a good life Instead of neglecting them.It is very difficult to survive under the present hike in prices in every walk of life.Govt. Should not treat the retirees as second citizens once if they are not part of the organisation forgetting the hard work put in in upliftment of the organistion.The Govt should immediately consider for re-instating in the gazzette
    the effective date to be given as 1.01.2006 by Presidential order if necessarry to stop agony of theese unfortunate section of the workers.
    More so, there is no justification
    in giving effective date as 24.05.2010 considering efffective date for central as 1.1.2006 and for others as 24.5.2010.

    Hope The Govt. of India do good to the retirees whose latent money
    of there hard work is seen in reality.

    On behalf of all theese work force request PM,FM And all MPs to support the cause of theese people and keep in good faith about the Govt. and the elected MPs and Rajya Sabha members.

  3. ranganatha iyer says:

    after knowing that the effective date of henancement of gratuity payment is from 24.05.2010 allmost all section of employees/officers of PSU’s , Banking and others are upset over the effective date given by the Govt.The great injustice done to the small section of the people who are in great need of money due to very price rise of commodities,lower income from the retirement benefits,to take care of medical necessities of self and dependents,other social requirements,Governemnt should rethink on the effective date and provide good support for the retirees to lead a good life Instead of neglecting them.It is very difficult to survive under the present hike in prices in every walk of life.Govt. Should not treat the retirees as second citizens once if they are not part of the organisation forgetting the hard work put in in upliftment of the organistion.The Govt should immediately consider for re-instating in the gazzette
    the effective date to be given as 1.01.2006 by Presidential order if necessarry to stop agony of theese unfortunate section of the workers.
    More so, there is no justification
    in giving effective date as 24.05.2010 considering efffective date for central as 1.1.2006 and for others as 24.5.2010.

    Hope The Govt. of India do good to the retirees whose latent money
    of there hard work is seen in reality.

    On behalf of all theese work force request PM,FM And all MPs to support the cause of theese people and keep in good faith about the Govt. and the elected MPs and Rajya Sabha members.

  4. SHIVAKUMAR BS says:

    It is very much regretted to note that the govt.of India has given the effective date to gratuity amendment as 24-05-2010 instead of 01-01-2007 as per the recomendations of the committee as per which wages were given the effective date as 01-01-2007.
    As per this all the senior citizens who got retired from 01-01-2007 were enthusiastically dreaming of getting the gratuity amount which is very much necessary for retired employees/officers of the public
    sectors who are not getting the pensions to meet their needs for their childrens marriage/future necessities of livelyhood. I hope that honourable PM and FM will understand the problems and difficulties of the retired employees/officers of PSUS’who are not getting the pensions and intervene to give the effective date of gratuity amendment as 01-01-2007 instead of 24-05-2010.
    All retired employees/officers of the PSUS’should be writing to Govt.for immediate amendment of effective date. Dear Ministers and parliamentarians please understand the difficulties of retired employees/officers and amend the effective date immediately. You should not beat on the stomach of the retired persons who have shelved their life for uplifting of PSUS’ during their service in their respective organisations. All of unite to fight to acheive the goal. SHIVAKUMAR BS

  5. SEKHAR says:

    BALCO-BHARAT ALUMINIUM CO.LTD. WAS A PSU AND WAS DISINVESTED IN 2001 WITH 49% STILL WITH CENT.GOVT. NOW WHICH DATE SHALL BE EFFECETIVE FOR BALCO.CAN IT BE CLARIFIED. IF WE ARE TO APPEAL TO GOVT ,THEN WHAT IS THE PROCEDURE AND MAIL ADDRESS .FAILED TO SEND MAIL TO PETITIONER COMMITTE AT rslib@sansad.nic.in

    Please send your views by mail

  6. SHARADCHANDRA DANEJ says:

    Dear Akhilesh Kumar,

    There were two amendment in the Gratuity Act 1972 recently. First in Augst 2009 which is effective from 1.1.06 for central govt. employees and the second amendment was passed by both the houses on 5.5.2010 and is applicable from 24.5.2010 for private sector employees that includes banking, insurance sector and all the PSUs employees. This discrimination has been the root cause of resentment amonst the retirees who retd after 1.1.06. Lets then unite and fight for our lawful rights.

    S C DANEJ

  7. SHARADCHANDRA DANEJ says:

    Dear Akhilesh Kumar,
    There were two amendment in the Gratuity Act 1972 recently. First in Augst 2009 which is effective from 1.1.06 for central govt. employees and the second amendment was passed by both the houses on 5.5.2010 and is applicable from 24.5.2010 for private sector employees that includes banking, insurance sector and all the PSUs employees. This discrimination has been the root cause of resentment amongst the retirees who retd after 1.1.06. Lets then unite and fight for our lawful rights.
    S C DANEJ

  8. SHARADCHANDRA DANEJ says:

    Dear All Pensioners,

    We need to unite together to protest this discrimination about payment of enhanced gratuity. Please let us fight it together. Anyone should tell me how to unite and protest.

    S C DANEJ

  9. SHARADCHANDRA DANEJ says:

    Hello everyone,

    We can lodge a protest or request about this discrimination in payment of enhance gratuity from 24.5.2010 to Rajyasabha Petition Committee. The email address of Rajyasabha Petition Committee is : rslib@sansad.nic.in

    I request all the pensioners who retired after 1.1.06 and others too to please do write to the Petition Committee.

    S C DANEJ

  10. Dinesh says:

    24 MAY 2010 IS NOW THE OFFICIAL DATE OF EFFECT FOR THE LIMIT OF PAYMENT OF GRATUITY AMENDMENT 2010. A INHUMAN AND SAD DECISION ON THE PART OF THE GOI WITHOUT ANY JUSTIFICATION PUTTING RETIREES AND SENIOR CITIZENS INTO GREAT FINANCIAL LOSS.I REQUEST THE hONBLE PRIME MINISTER TO KINDLY INTERVENE AND SAVE US FROM THIS DISCRIMINATION AND ORDER 1.1.2006 AS THE EFFECTIVE DATE IN THE INTEREST OF NATURAL JUSTICE AND FAIR PLAY FOR WHICH THE PM IS KNOWN.

    Read more: https://www.taxguru.in/general-info/payment-of-gratuity-amendment-act-2009-amendment-in-section-2-and-insertion-of-section-13a.html#ixzz0pYjoh0fY

  11. n m behera says:

    IT IS TOO BAD TO TREAT DIFFERENT PERSONS IN DIFFERENT YARDSTICKS. WHEN THE BENEFITS OF GRATUITY IS GIVEN TO GOVT EMPLOYEES FROM 1.1.06, THE SAME DATE SHOULD BE MADE APPLICABLE TO OTHER EMPLOYEES ALSO. EFFECTIVE DATE FOR GRATUITY AMENDMENT BILL 2009 AND 2010 SHOULD HAVE BEEN THE ONE AND SAME. HOPE, GOVT WILL LOOK INTO THE MATTER SOON.

  12. mns.kidwai says:

    EMPLOYEES OF OTHER SECTORS (excepting Cent.Govt) ARE NOT CITIZENS OF THIS COUNTRY OF THE SAME LAND. WHY THIS NEGATIVE TREATMENT TO THEM WHO HAVE RETIRED ON OR AFTER 01.01.06 W.R.TO PAYMENT OF GRATUITY OF ENHANCED LIMIT OF 10-LACS.RETIRED EMPLOYEES SHOULD GO TO PM/FM/HIGH COURT FOR NATURAL JUSTICE.

  13. harish gupta says:

    harish gupta why disparty betwin govt employees and psu employees in respect of grautity already amended wef 01/01/2006

  14. ramesh pal singh says:

    please let me know any representation from banking industry/associations for giving retrospective effect to gratuity act 2010 has been sent to government and what is the result….

  15. j p says:

    a public sector undertaking employee not getting 6th pay revision will be entitled for enhanced amount of gratuity or not if he retires on 30th June 2010?

  16. sitansu says:

    FOR GOVT.1/1/2006 ,FOR PSU 1/1/2007 AND FOR OTHERS WHO CONSTITUTE A MAJOR PART IT IS 24/5/2010. WHY DISPARITY ? PL.NOTE TAX SLAB/RATE IS SAME . HOPE OR HON. PM & HON. FM INTERFERE.WE HAVE LOT OF HOPE FROM TWO LEARNED PERSONILITIES /LEADERS OF COUNTRY

  17. mehtamanubhai says:

    24 MAY 2010 IS DECLARED IN GAZETTE THE DATE OF EFFECT FOR THE LIMIT OF PAYMENT OF GRATUITY AMENDMENT 2010.IT IS VERY SURPRISING.AS IT WAS ALL EXPECTED THAT THE GOVT.WILL CONSIDER AT LEAST 1-1-2006.DT.OF EFFECT AS IT WAS GIVEN TO CENTRAL GOVT.EMPLOYEES.REQUEST TO FINANCE MINISTER AND OUR HONBLE PRIME MINISTER TO INTERVENE KEEPING IN VIEW OF NATURAL JUSTICE.CAN WE GO TO THE COURT OF LAW ? CLEAR CUT BIFURCATION WE CAN SEE THAT CENTRAL GOVT.EMPLOYEES AND OTHER GOVT.UNDER TAKING UNITS.

  18. mehtamanubhai says:

    IT IS VERY MUCH SURPRISING DATE OF EFFECT FOR THE AMENDMENT BILL 2010 ON GRATUITY i.e.24TH MAY 2010. BY THE GOVT.GAZETTE.REALLY IT REFLECTS TO ALL RETIRED EMPLOYEES WHO RETIRED ON OR AFTER 1/1/2006. AS IT WAS ALL EXPECTED.I BELIEVE THAT THE HONBLE PRIME MINISTER AND FINANCE MINISTER TO INTERVENE IN VIEW OF NATURAL JUSTICE.GOVT.OF INDIA CAN GIVE THE RISE FROM 3.5LACS TO 10 LACS TO THEIR EMPLOYEES WITH EFFECT FROM 1/1/2006 AND WHY 24 MAY 2010 TO OTHERS ? CAN WE CHALLENGE IN COURT OF LAW ?

  19. mns.kidwai says:

    IT IS VERY MUCH SURPRISING THAT LIMIT OF PAYMENT OF GRATUITY UPTO 10-LACS HAS BEEN GIVEN THE EFFECT ON 24.05.10 IN THE GAZETE NOTIFICATION. IT IS A DENIAL AND INHUMAN MOVE FOR THE EMPLOYEES (OTHER THAN CENT.GOVT)who have retired on or after 01.01.06.HON’BLE PRIME MINISTER& FINANCE MINISTER SHOULD IMMEDIATELY INERVENE KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE & EQUITY.

  20. s. SIVARAMAKRISHNAN says:

    THE PAYMENT OF GRATUITY ACT SHOULD BE UNIFORMLY APPLICABLE TO ALL THOSE WHO ENGAGE MORE THAN 10 EMPLOYEES FROM A UNIFORM DATE AS APPLICABLE TO GOVERNMENT SERVANTS. THIS SHOULD BE REVIEWED AND JUSTICE RENDERED BY THE HON’BLE FM / PM AND ALL THOSE CONCERNED. IT SHOULD BE BORNE IN MIND THAT RIGHT FROM THE GROUND LEVEL TO THE TOP, EVERY EMPLOYEE CONTRIBUTE FOR THE GROWTH OF THE NATION. HENCE, THERE SHOULD NOT BE PARTIALITY IN TAKING DECISIIONS. EXPECTING A MEANINGFUL DECISION FROM ALL THOSE IN POWER.

  21. s. says:

    The payment of gratuity act should be uniformly applicable to all those who engage more than 10 employees. But, then why is this partial treatment among the government and non-government employees. This requires immediate review by all those concerned, as all the employees irrespective of government or non-government contribute to the growth of the motherland. Hope the HONOURABLE FINANCE MINISTER AND THE HONOURABLE PRIME MINISTER WILL INTERFERE AND RENDER JUSTICE TO ENHANCE THE GRATUITY TO 10 LACS UNIFORMLY FOR ALL THE ELIGIBLE EMPLOYEES FROM THE 1ST JANUARY 2006.

  22. Sidharth says:

    It’s OK with the 2010 bill. Can someone tell about the assent of the president for 2009 bill. If it did get, what is the date?

  23. Ranjit Rai says:

    I retired from the Coop.Sector bank w.e.f 31.12.2007, will you please let me know whether I will be entitile to enhanced gratuity recently passed by the parliament as I am too governed by the Gratuity Act.

  24. mns kidwai says:

    THE ASSENT OF THE PRESIDENT HAS BEEN GIVEN W.R.TO AMENDMENT OF GRATUITY LIMIT OF 10-LACS.NOW THE CENTRAL GOVT. WILL BE KIND ENOUGH TO GIVE ITS EFFECT WEF 01.01.06 TO GIVE BENEFIT TO THOSE EMPLOYEES RETIRED FROM 01.01.06 KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE IN THE SAME LAND.

  25. s s sharma says:

    Quote “ MINISTRY OF LAW AND JUSTICE
    (Legislative Department)

    New Delhi, the 18th May, 2010/Vaisakha 28, 1932 (Saka)
    The following Act of Parliament received the assent of the President on the 17th May, 2010 and is hereby published for general information:-

    THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010
    (No. 15 OF 2010)

    [17th May, 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:-

    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.
    Short title and commencement
    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. Amendment of section 4 of Act 39 of 1972.

    Unquote V.K.BHASIN,
    Secy. To the Govt. of India

  26. mns kidwai says:

    THE PAYMENT OF GRATUITY OF 10-LACS
    SHOULD HAVE ITS EFFECTIVE DATE ON 01.01.06 KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE FOR EMPLOYEES WHO HAVE RETIRED ON OR AFTER 01.01.06

  27. K.P.VADIVEL says:

    what is the fate of bank employees who retired during 2007 because of this amendment.the effective date of amendment should be from 2006.if it is not done then it is injustice to all those who retired from 2006 to 2010 by govt. of india.

  28. M V R S Rao says:

    I agree with views of Mr N S Roy.
    Whether any one can help me in getting the gazette notification for enhancement of gratuity limit and its applicability date. Thaks

  29. Ashoke Kr Dhole says:

    the Gratuity amendment bill 2010(enhancing the gratuity payment from Rs.3.5 lakhs to Rs.10 lakhs) has been passed in Lok Sabha & Rajya Sabha.
    PLEASE send me the gazette notification for recent amendment in payment in gratuity act bill with its effective date of implementation orthe notification may be published in Web site.
    Ashoke Kr Dhole

  30. akhilesh kumar singh says:

    since the payment of gratuity amendment bill 2009 has been modified on May 5th 2010 . Is this
    applicable since 2009? Please make
    your comment.

  31. RAMDASS.S` says:

    The Union Govt.has taken up the Gratuity amendment bill (enhancing the gratuity payment from Rs.3.5 lakhs to Rs.10 lakhs) now very lately and it ought to have had it as soon the 6th Pay commission Recommendations have been implemented i.e. from 1-1-2006 in Central Govt.Depts etc., But now the Hon’ble Minister is refusing during the debate at Rajya Sabha on 5th May,2010 to give effect of the amendment from 1-1-2006. Where is justice? What will be the position of the retirees from Central and State PSUs etc.,(those who follow the Gratuity Act) after 1-1-2006 to the date of passing the amendment bill? These people should not be penalized for the delayed action of the Govt.

  32. n.s.roy says:

    The Central Govt.should view it in the light of Principle of Natural Justice in giving restrospective effect wef 01.01.2006 for retired employees of LIC & BANK & other allied sectors. This mind set will bring justice for retired employees of the above SECTORS who have retired on or after 01.01.06 and thus Law of Equity will prevail in the SAME LAND.

  33. n.s.roy says:

    This is a good thing that Gratuity limit has been increasedto 10-lacs by the Govt.But, it should give effect wef 01.01.2006for other emplyees like LIC and BANKS ETC> from which citizen- employee of CENT>GOVT of the same LAND has already been given the benefit

  34. Manickam.y says:

    There is a rumour that the date of implementation is the date of passing of the bill by the parliament i.e 05/05/2010.If true it means again a differential treatment to THE GOVT.AND THE PSU & BANK EMPLOYEES.please let the correct position be made known to all.

  35. shaiesh shah says:

    PLEASE send me the gazette notification for recent amendment in payment in gratuity act bill with its effective date of implementation.- shailesh shah vadodara.

  36. Trichy Radhakrishna says:

    Please let me know whether the Right Hon’ble President of India has given her assent to the ‘Payment of Gratuity (Amendment) Act, 2009’

  37. Dr. P. Ravisekhararaju says:

    Whether payment of gratuity (Amemdment) Act, 2009 got President of India’s assent?

    Date of commencement of the above Amemdment.

    Whether Gazette notification in respect of the above has issued, if so inform.

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