How Will the Gratuity Amendment Bill Impact Employee Benefits in Your Industry?

Payment of Gratuity (Amendment) Bill, 2010

The Payment of Gratuity (Amendment) Bill, 2010 has been introduced in the Lok Sabha. The Payment of Gratuity Act 1972 provides for the payment of gratuity to employees engaged in industries including mines, oilfields, plantations, shops, factories, amongst others. This Amendment Bill proposes to raise the ceiling of gratuity to be paid from the present level of Rs. 3.5 lakh to Rs. 10 lakh.

Stage Date

- Introduction: Apr 22, 2010
- Lok Sabha: Introduced
- Rajya Sabha: Pending

NB: This data is collected from the internet/other HR Group and posted here to spread this message.

Regards,
Debajyoti

It is said that the increase of Grat. from 3.50 to 10L means that there is no Income Tax for the amount received up to a million!

Yesterday (05/05/2010), this bill was passed in the Rajya Sabha by voice voting.

Waiting for more details.

Regards,
Debajyoti

Dear All,

The Payment of Gratuity (Amendment) Bill, 2010 has been introduced in the Lok Sabha.

The Payment of Gratuity Act 1972 provides for the payment of gratuity to employees engaged in industries including mines, oilfields, plantations, shops, factories, amongst others. This Amendment Bill proposes to raise the ceiling of gratuity to be paid from the present level of Rs. 3.5 lakh to Rs. 10 lakh.

Stage Date
Introduction Apr 22, 2010
Lok Sabha Introduced
Rajya Sabha Pending

NB: This data is collected from the internet/other HR groups and posted here to spread this message.

Regards,
Debajyoti

Dear Karajgi,

Please find attached herewith the copy of the notification dated 31.12.2009, by virtue of which teachers have also become eligible to receive the gratuity amount under the Payment of Gratuity Act, 1972.

With Regards,
R.N. Khola

Query on Gratuity Benefit Extension

Sir, where can I get the bill extending the gratuity benefit to teachers of private institutions?

Karajgi

Dear All,

We recently had an employee retire from the company after completing 30 years of service. Regarding his gratuity, the full basic and DA were taken into consideration and calculated accordingly. However, at the time of payment, our corporate office deducted Rs. 10,000 from Rs. 6.29 lakhs towards tax. The employee is disputing this deduction, stating that gratuity is exempt from tax up to Rs. 10,00,000. Please shed some light on this matter.

Regards,
Mailni

Dear all, can anyone please clarify my doubt regarding gratuity tax calculation?

Regards,
Malini

Dear Praveen, we are required to abide by the law relating to the Payment of Gratuity, and hence we are not in a position to opt for an amount less than the prescribed maximum limit of Rs. 10 Lakhs.

Regards,
R.N. Khola

You have shared an important message with us. Please keep us updated on any further developments.

Regards,
A. Ramyesh Khumar

This is very informative information. Now, with the gratuity amended from 3.5 lakh to 10 lakh, it means you don't have to pay any income tax until 10 lakh. However, it is pending at the state level, so keep that in mind.

Thanks,
Regards,
Vijendra Singh Rauthan
Asst. Manager HR