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Dear friends,
I am attaching Payment of Gratuity (Amendment) Bill 2009 passed by Parliament recently. It provides for including teachers in the definition of "employee" with retrospective effect.
24th December 2009 From India, Malappuram

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Dear all!!!Has it been passed by both the houses of parliament and Presidential assent accorded? Attachment is enclosing the bill. But has it become effective> I 've not read it in the news so far
26th December 2009

As per my knowledge and discussions with experts, the afore-mentioned bill has not yet become an Act.

After a Bill has been passed by both the Houses of the parliament, it

is presented to the President for his/her assent. Then only it becomes

an Act. But in India it is only a formality, because only in

exceptional cases, President may send it back for reconsideration.

Definitely, this Bill will get the assent of the President and it will come

into force with retrospective effect.

You please read the following section which has been newly inserted by

the amendment Bill

"13A. 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.".
26th December 2009 From India, Delhi
Dear All, I am attaching the ALL India State wise Labour fund details for the refernce of all HR community. regards Murali(tatapranav)
26th December 2009 From India, Hyderabad

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Dear All, Attached is the CDBT notification dated 18.12.2009 regarding Income Tax on perks. kb prasanna
26th December 2009 From India, Korba

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Iam vennela..Iam doing my MBA now and i ve taken HR as my specialisation. Iam planning to do my project in a Banking sector. Can any body suggest me the various HR topics that can be doneBanking sector.
26th December 2009 From India, Hyderabad
Dear friends, I am attaching Workmen’s Compensation Amendment Act 2009 as finally assented by the President in Word format. Regards,
7th January 2010 From India, Malappuram

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The undernoted is the news that appeared in the Tribune of 7/01/2010.

Hike likely in pvt employees’ gratuity
Anita Katyal
Our Political Correspondent

New Delhi, January 6
The Centre is proposing to raise the ceiling for payment of gratuity for private sector employees from Rs 3.5 lakh to Rs 10 lakh. The proposal is to be placed before the Union Cabinet for its approval at its meeting tomorrow.

The move, which has been in the pipeline for several months, follows the Sixth Pay Commission recommendation that has raised the limit for Central government employees. Once the Cabinet approves the Labour Ministry’s proposal tomorrow, it will bring parity between the government and private sector employees.

Sources said there had been a spate of representatives from the private sector demanding such an extension in the gratuity payment after the Centre had changed the rules for the government employees. The matter had been under consideration, as the Labour Ministry first elicited the views of the stakeholders concerned.

The trade unions and other representatives of employees, it is learnt, had gone as far as to suggest that there should be no ceiling on the payment of gratuity. However, the Centre decided to put the private sector and the government employees at par by fixing the upper limit at Rs10 lakh as it was felt that such a drastic move would place a financial burden on the employers.

The Payment of Gratuity Act, 1972, applies to factories and other establishments employing 10 or more persons. The employees are entitled to payment of gratuity on completion of 10 years in service at the rate of 15-day wages for each year of service or part of it in excess of six months subject to maximum Rs 3,50,000.

Since the gratuity is considered an income, an employee has to pay taxes on it. However, gratuity up to Rs 3,50,000 is exempted from tax under the provisions of Section 10(10) of the Income Tax Act, 1961.

In the last Parliament session, the Centre had amended the Gratuity Act to clarity the definition of an employee. According to the new law, anybody who is earning a wage is characterised as an employee and is liable to receive gratuity.

Has the amendment to the bill been cleared.

7th January 2010 From India, Ludhiana
Payment of Gratuity (Amendment) Act 2009 as assented to by the President is attached in Word format. Thanks
7th January 2010 From India, Malappuram

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Thank you Agarwal Saheb. This amendment was long awaited by employees who were not included in the definition. The retrospective effect also would make many eligible who did not get the benefit.
7th January 2010 From India, Madras
In the news paper dated 7.1.2010 I have read that the ceiling limit of Rs.3.50 under the gratuity Act, 1972 has been enhanced to Rs.10 Lacs, please confirm. Regds, Jaspal Anand
8th January 2010 From India, Chandigarh
let me know whether the section 4 of the gratuity act 1972 is also amended to pay gratuity rs.10 lacs to private sector employee.
10th January 2010 From India, Calcutta
in the cabinet session last saturday, the existing gratuity limit of 3.5 lacs was to be revised to 10.00 lacs. Does anyone of us have traced out the gazzette copy, if so pl, circulate Rgds Sushil
11th January 2010 From India, Mumbai
Dear PCA,
Re :WCA, 1923
If possible, please let the members of this forum have a copy of the notification in this regard, or at least know the date of notification, as the amendment would take place only after the notification as per section 1(2) of the Amended Act.
12th January 2010 From India, Chandigarh
kindly let me know that whether the cabinet approved the enhancement of gratuity from 3.5 lac to 10 lac for the private employees by amending the payment of gratuity act?
16th January 2010 From India, Ludhiana
No, it is not yet amended. As per newspaper reports govt. is planning to introduce bill in Budget session of Parliament in this regard.
17th January 2010 From India, Malappuram
I am also trying to get the same information. If any one has any update on this matter pl update Regards, Jatin Suley
6th February 2010 From India, Gurgaon
Thanks for all the information everyone. I have a question regarding the limit for the gratuity payment at the end of service. The 1972 act says that only 3.5 lakhs can be paid at the time of retirement- is this true? What happens to the balance amount? Also how is the gratuity calculated?
22nd February 2010 From China, Shanghai
When the amount of gratuity payable to an employee shall not exceed Rs.3.5 lacs then nothing is going to happen to the balance amount.Gratuity amount is to be calculated as per section 4 of this Act.
With Regards,

22nd February 2010 From India, Delhi
I would like to know whether President of India has assented the latest amendments in payment of gratuity act. Can someone sends file/attachement in the above matter.
8th March 2010 From India
Dear Mr. Agarwal,
There is a contradiction, as the amendment of The PG Bill 2009 states clearly that it excludes Government officials "Clearly Stated in the bill" (please read and refer) and it need to be presented to the President of India for "Ascent" then only it would become law.
There are some bills presented in parliament no need to be placed before both the houses.
Jaikumar Ranganathan

9th March 2010 From India, Madras
Dear Udita,
That is true, we can pay only Rs.3.5 lakhs as "Maximum Limit prescribed for I-T exemption" however an employer can pay anything as gratuity but duly taxable as now-a-days employers are insuring their Pay-outs by creating a Gratuity Policy.
Calculation of Gratuity is simple =
Salary (Basic + DA) x 15/26 x No. of years of service
Basic qualifications
* undisturbed service of continued 5 years with one single employer
I think this would satisfies your requirement
Jaikumar Ranganathan
(0)9176809600 / 9444020774

9th March 2010 From India, Madras
Hi please find attached the notification for increase in ceiling for gratuity from Rs.3.50 lacs to 10 lac.
17th November 2010 From India, New Delhi
hi Pl find attached the notification for increase in ceiling for gratuity from Rs.3.50 lacs to 10
17th November 2010 From India, New Delhi
Hi murali ,
Thanks for your giving information, and i want know the details every month the employer have to pay that LWF or yearly once. and then how can we deduct that LWF from salary....we want to show in salary slip ...?
28th May 2011 From India, Madras
Could you please advise on the following:
1. Which are the value for consideration as CTC.
2. Please also confirm wheather Gratatuity which is payable upon retirement of leaving the servicing after putting the minimum service of 5 years is a part of CTC.
Jaspal Anand
29th May 2011 From India, Chandigarh
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