Gratuity Ceiling Increase to 10 Lakhs: What Does This Mean for Private Sector Employees?

Dear All, Good news. Recently, the bill has been passed for the ceiling of the amount of gratuity up to 10 Lakhs, which was earlier 3.5 Lakhs. The recommendation was already applicable in government undertakings (recommended by the 6th Pay Commission); now, it will be applicable in the private sector as well.

For more details, you can view the following link - [Gratuity ceiling raised to Rs 10L - Yahoo! India News](http://yahoo.com) *[link updated to site home]* ([Search On Cite](https://www.citehr.com/results.php?q=Gratuity ceiling raised to Rs 10L Yahoo India News) | [Search On Google](https://www.google.com/search?q=Gratuity ceiling raised to Rs 10L Yahoo India News))

Thank you.

Payment of Gratuity Act is applicable to all factories/establishments having 10 or more employees. For more information, you can look at the Payment of Gratuity Act 1972. It is available online.

Regards,
Amit

Hi,

The proposal has to be presented in the Parliament in the form of a bill and has to be passed in both the Lok Sabha and the Rajya Sabha before it becomes an Act. Until then, only the existing Gratuity Act is applicable.

Hey,

Find enclosed the guidelines for filling up the gratuity form.

Dear,

Please clarify if the current gratuity amount ceiling of Rs. 3.5 L is the maximum gratuity amount or if it is a tax-free gratuity amount. This is not clearly stated in the Gratuity Act. If anyone has any notification regarding this, please share it with me.

As per the new ceiling, the maximum gratuity of 10 lakh is payable. Does that mean above 10 lakh, the employer is not liable to pay?