Gratuity Ceiling Increase: Has the Maximum Limit Been Raised Above 3.5 Lakhs Recently?

Dear Professionals,

Has the maximum payable ceiling amount for gratuity been raised from Rs. 3.5 lakhs to a higher amount recently? If anybody comes across any notification, please inform me at [Login to view].

Dear Ganesan,

The amount of Gratuity has been increased from 3.5 to 10 lacs. But no notice has come as of now.

The Payment of Gratuity (Amendment) Bill, 2010 was introduced in Parliament on 22nd April 2010 to enhance the gratuity ceiling limit from Rs. 3.50 lakhs to Rs. 10.00 lakhs.

Y. K. Anand

Hi Everyone,

I have a query: Are contract employees with a direct contract with the company eligible for Gratuity?

This bill has been passed by the Lok Sabha, the lower house. It will go to the Rajya Sabha, the upper house, and finally will be with the President of India. After approval from the President, it will be published in the Gazette of India. Then it will become law. So, some more wait.

Gratuity Ceiling Raised

"NDTV Profit: A bill to raise the ceiling of gratuity for employees to Rs 10 lakh from Rs 3.5 lakh was passed by the Lok Sabha without discussion on Monday. The Payment of Gratuity (Amendment) Bill 2010, introduced by Minister of State for Labour Harish Rawat last month, was passed by a voice vote as AIADMK and some CPI(M) members trooped into the well raising slogans. The bill seeks to amend the Gratuity Act to enhance the amount of gratuity payable to an employee from Rs 3.5 lakh to Rs 10 lakh. The legislation was brought following demands from trade unions and others to remove the ceiling or increase the maximum payable amount, which was fixed in 1997."