Labour Laws & Ir
Hrm, Recruitment, Training And Development,
Dy Lab Comm, Pb (retd), Consultant And Qualified
K C S Kutty
Labour Laws Consultant
Sr. Manager - Hr
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
Hike likely in pvt employees’ gratuity
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
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
22nd February 2010 From China, Shanghai
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.
9th March 2010 From India, Madras
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
* undisturbed service of continued 5 years with one single employer
I think this would satisfies your requirement
(0)9176809600 / 9444020774
9th March 2010 From India, Madras
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.
29th May 2011 From India, Chandigarh