Gratuity Limit increased to 10 Lakh as per Income Tax Act and Gratuity Act in Rajya Sabha

Parliament on Wednesday approved enhancing the gratuity limit for employees from Rs3.5 lakh to Rs. 10 lakh as also the exemption threshold from income tax on it.

Parliament on Wednesday approved enhancing the gratuity limit for employees from Rs. 3.5 lakh to Rs. 10 lakh as also the exemption threshold from income tax on it.

While the Lok Sabha had passed the Payment of Gratuity (Amendment) Bill 2010 on Monday, the Rajya Sabha put its stamp of approval on it on Wednesday.

Labour minister Mallikarjun Kharge, replying to a brief debate on the bill said the legislative measure also provides that the income tax exemption limit has commensurately been increased to Rs 10lakh from Rs3.5 lakh earlier.

On demands for giving a retrospective effect to the measure, Kharge said, “We want to give a lot, but there should be a capacity (of the employer) to pay and it should reach the beneficiaries.”

He gave the same reason for not accepting demands from the members to improve the formula for calculation of gratuity.

The bill was brought following demands from trade unions and others to remove the ceiling or increase the maximum payable amount, which was fixed in 1997.

Earlier participating in the debate, Congress member and veteran trade unionist G Sanjeeva Reddy said payment of gratuity should be done with retrospective effect.

CPI(M) member T K Rangarajan said seasonal workers are not getting benefit and therefore their interests should also be protected.

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 defination of employee

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49 responses to “Rajya Sabha approves increase in Gratuity Limit to Rs. 10 Lakh”

  1. H.H.Pankhania says:

    I was retired voluntarily from the services of bank on 31.12.2009…am i entitled for revised gratuity?
    H.H.Pankhania

  2. Panduranga Rao Uppu says:

    Please revise the pension scheme of introduced in the year 1995 which required revision of four times after its introduction as provided in the Act which has not been done.

  3. Panduranga Rao Uppu says:

    Thanks to UPA Government. But had the UPA Government amended the Pension Scheme introduced by it during the regime of Late Sri P.V. Narasimharaogaru, during November 1995, which is very unjustified, it would have won the elections or at least it would not have been defeated so horribly in 2014. Now the NDA Government led by Shri Narendra Modiji was saying Ache Din but we the sufferers of the pension scheme of Nov 1995 have not got Ache Din yet, even after one year of BJP led NDA Government till now. The NDA Government had disappointed the working class also by not revising the Income Tax Limit up to Rs.5 Lakhs as promised. There is a provision in the Pension Scheme to revise it for every five years after its introduction (Nov 1995) but had done only once even after 20 years of its introduction. I worked in the Hindustan Shipyard Limited Visakhapatanm for 37 years 7 months and 25 days and retired on 30-06-2013. I have contributed nearly Rs.2 Lakhs by way of foregoing Provident Fund towards the pension scheme during the period from 1995 to 2011 and was granted a meager pension of Rs.1887/- which is not justified. I request the Present Government to suitably amend the Pension Scheme of 1995 as provided in the Act itself which requires 3 more revisions and make a minimum pension of Rs.5,000/- for all the pension holders who have contributed a minimum of 10 years of contribution towards the scheme and oblige

  4. RANGANATHA. RAO. B says:

    Respected Sir,
    I retired from a Public sector enterprise on 30th November2006.I received gratuity amount Rs 3.5lakhs.Also I am getting pension Rs.1212/-
    Can you please let me know the following.
    1) Am I eligible for the increased gratuity amount Rs.10 lakhs?
    2) Am I eligible for the increase in pension amount Rs.3000/-
    Thanks.

  5. S.S.Naik says:

    I retired from Indian Airlines on 31/01/2009, am I entitle to get enhanced
    gratuity of 10 lakhs?

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