How Does the 2010 Gratuity Amendment Impact Your Benefits? Let's Discuss!

Dear friends,

I am attaching a copy of the Payment of Gratuity Amendment Bill 2010 as introduced in Parliament on 22.4.2010 for your information. The Bill provides for an increase in the ceiling for gratuity from Rs. 3.50 lakhs to Rs. 10 lakhs.

Regards,

Additional Info

The Payment of Gratuity Act has been amended to include "TEACHER". Accordingly, teachers are also eligible for gratuity as per the Act.

Yes, it is 100% authentic. We all know the working speed of government departments and hence no comments. But it is just a bill. It will be effective from such date as may be notified by the government after it is converted into an act.

Your worry is as good as anyone who retired after 1997. The date of the last amendment was in 1997. Those who retired after more than 35 years of service could only get one-third of the actual gratuity. My proposals are: (1) the Payment of Gratuity Act must be amended every five years, (2) just like pension, the payment of gratuity must be proportionate to the years of service - with 30 years as full eligible service and anything less in proportion to that. There is no point in fixing a ceiling as years go by. Since in the industrial sector there is no pension apart from the EPF pension and the bonus is limited to the rock bottom, gratuity is the only amount that an employee gets on superannuation.

Leons Augustin

Dear,

There is an error opening this file. The file is damaged and couldn't be repaired.

Please send the Payment of Gratuity amendment, 2010 again (the attached file).

Thanks,
AK Sharma

I have not yet come across any news about an amendment in the Gratuity Act enhancing the limit from 3.5 lac to 10 lac being approved by the parliament. Yes, today on the 29th of April, the Finance Bill has been passed with unanimous approval. Can anybody tell me about the approval of the amendment in the Gratuity Act?

Whether the act has been passed. What is the effective date from which the new ceiling is applicable

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Whether the act has been passed. What is the effective date from which the new ceiling is applicable

Hi there,

The bill was introduced and passed in the Lok Sabha on 3rd May 2010. But can anyone guess/imagine from which date onwards it will be effective? What could be the possibility of it getting affected with retrospective effect from an earlier date?

Regards,
Rmcham

Please see the extract from Lok Sabha Bulletin Part 1 on 3rd May 2010 2:35 P.M.

The Payment of Gratuity (Amendment) Bill, 2010
Time Taken: 3 mins.

The motion for consideration of the Bill was moved by Shri Mallikarjun Kharge.

The motion for consideration was adopted, and clause-by-clause consideration of the Bill was taken up.

Clause 2 was adopted.

Clause 1 was adopted.

The Enacting Formula and the Long Title were also adopted.

The motion that the Bill be passed was moved by Shri Mallikarjun Kharge.

The motion was adopted, and the Bill was passed.

Recently, the Payment of Gratuity Amendment Bill has been passed by the parliament, and it shall come into force on such date as the central government may, by notification in the official Gazette. Does it mean that the effective date of this bill is on the date of notification or any retrospective date?

K.V. Aravindakshan

Hi,

I recently retired from a Public Sector Unit. I was eligible for a gratuity of Rs. 5,31,000 as per the rules, but because of the ceiling existing as of 05-05-2010 (the date on which the proceedings were awarded), I could only receive Rs. 350,000.

The newspapers on 06-05-2010 reported that the proposed amendment to the Gratuity Act to raise the ceiling to Rs. 10 lakhs instead of the original Rs. 3.5 lakhs has now been approved. However, the amended Act was not available in my search.

Please tell me:
(1) Where can I get a PDF file of the new Gratuity Act?
(2) When does it become operative?
(3) Will it apply with retrospective effect in my case of retirement on 31-03-2010?

Thanks,
Venugopalan K M.

I thank you very much for providing me with valuable information. I request you to kindly inform me whether Rs 10 lakhs is exempt from income tax. If so, from which date?

Dear Sir,

I am serving as a senior executive with a Public Sector Bank and am retiring on May 31, 2010. The Payment of Gratuity Bill was passed by both houses of Parliament by May 7. However, there has been no news regarding the President's signatures since then. Given that the bill had support from all parties, why is Madam President taking so long to sign, and when can we expect the notification to come? Additionally, will it be effective from the date of signing by the President as it converts into an Act, i.e., law on that day, or from the date of notification? Please clarify.

I shall await your response as time is running out.

RK KAPOOR

Dear friends,

The Bill received assent from the President on 17th May 2010 and has now become an Act. However, it will come into effect on a date that will be notified by the government. We will need to wait for the notification.

Thanks

Dear friends,

I am attaching a copy of the Payment of Gratuity Amendment Act Circular No. 56 of 2010, published on 04.05.2010, for your information. Maybe this can help you.

Regards,

Many HR friends have been circulating the Bill as it was presented to the Parliament. What's actually needed is information on whether the bill has been notified and if not, when it shall be done. Also, whether the effective date for enhanced gratuity will be retrospectively 1st Jan 2006 for Central Govt employees and 1st Jan 2007 for some PSUs who have implemented the wage revision.

As per the notification issued by the government, the increase in the ceiling for gratuity from Rs. 3.50 lakhs to Rs. 10 lakhs is effective from 24.5.2010. A copy of the notification is attached for the information of all.

Thanks

How to Calculate Gratuity After This Amendment?

I came to know from a friend that now the basic salary is multiplied by a certain percentage and then by the number of years to calculate gratuity. Please help as I am totally confused.

Dear Member,

Do not be confused. The method of calculation of gratuity is the same as it was earlier, as provided in section 4 of the Payment of Gratuity Act, 1972.

Regards,
R.N.Khola

For gratuity calculation, please refer to section 4 of the Payment of Gratuity Act, 1972.

Regards,
R.N.Khola

Request for Detailed Information on Gratuity Calculation

Please help me out and provide detailed information on how gratuity is calculated.

This amendment has already been made effective from 24.05.2010. The attachment of this notification is available on this page itself. Please go through it.

Regards,
R N KHOLA

Please correct me if I am wrong. Payment of gratuity calculation for an employee is 45 days of their last payment in their organization multiplied by the number of years of service. If the organization is going to close without giving any notice to the employee, please also send me any other dues to recover from the organization.

Welcome to CiteHR. As already mentioned, please go through section 4 for gratuity payment calculation under the Payment of Gratuity Act, 1972.

Regards,
R N KHOLA