Govt may raise gratuity ceiling limit for private sector employees from Rs 3.5 lakh to Rs 10 lakh

The Government on Friday said there was “near unanimity” among all stakeholders to raise the ceiling of payment on gratuity for private sector employees from Rs 3.5 lakh to Rs 10 lakh and hoped a decision in this regard will be taken before the forthcoming Budget session. “We have already prepared legislation and it remains to be approved by the Cabinet,” Labour Minister Mallikarjun Kharge said.

After attending a meet of State Labour ministers here, he told reporters that consultation with various stakeholders on the issue have been going on for quite sometime now. Minister of State for Labour Harish Rawat indicated that the proposal could be approved before the Budget session. “There was some opposition from certain members in Karnataka but they have been sorted out now. There is near unanimity to implement it,” he said.

The Government nod will bring parity between government and private sector employees in enjoying equal gratuity benefits. The Sixth Pay Commission recommendation had raised the limit for Central government employees. Trade unions and other bodies have been pressing for its implementation at the earliest.