How The Payment Of Gratuity Is Being Regulated..??

It is okay that Government has now notified that the date of effect is from 24th may 2010. However it remains a moot point as to who decides the date of effect and what is the criterion -all seem hazy. Parliament nods okay. But why the same parliament is silent about of date of implementation and why such powerful parliament shrugs its responsibility of date of effect or implementation. A man or woman retiring on 24th gets rs. Ten lacs and a man or woman retiring a day(or a month) earlier gets short of six and half lacs. He or she would be in tears. This is pathetic.Instead of a quantum jump from 3.5 lacs to 10 lacs a step by step increase as per the year of retirement may be implemented.
T.K.Chandrasekaran, SBI, Chennai 7024.

The thread was started in 2008. Now the maximum amount of gratuity as per the Act is Rs 10 lakhs and not Rs 3.5 lakhs.
Madhu.T.K

dear,
As relevant information is already provided by other contributors, i would jus like to add that max gratuity payable is now revised to be 10,00,000 Rs and it is tax exempted...