Gratuity Limit Increase to Rs. 10,00,000: How Does This Impact You?

Dear All,

Finally, the gratuity limit has been increased from Rs. 3,50,000 to Rs. 10,00,000. It was passed by the Parliament on 22.04.2010.

Please find attached the notification for your records.

Regards,

Jagdish Pathak

Hi, Mr. Jagdish Pathak - The attachment is the amendment bill and not the "notification". Can you please post the notification.

Regards,
Salian

Pathakji, The notification has been posted by many. But the crux of the issue is from which date the enhanced ceiling will be effective? If you carefully read the notification, it mentions that it will take effect from the date the Government decides (appoints or fixes) to implement the revised Act. Though the Central Government wage revision circular stated that wage increases, etc., would be effective from 1.1.2006 (1.1.2007 for PSUs), in view of the wording in the Act passed by the Parliament, there is an element of doubt. I wish we get to have clarity in this regard.

Dear Friend,

The bill is for amendment and approval of Lok Sabha; it is not yet passed by Rajya Sabha. The official notification has not been declared.

Kindly note.

Regards,
Satish Kumar

There is some confusion regarding this notification. Could someone kindly clarify this matter for us?

Shri Jagdish Pathak,

Could you please confirm when the Gazette Notification regarding the Gratuity Amendment of 2010 is likely to be available? I am eagerly awaiting your valuable reply.

Thanks,
Ashoke Dhole

Friends,

Somebody says it is not passed by Rajya Sabha, IT IS WRONG. It has indeed been passed by both houses and must have gone to the President for signature. Then only Gazette notification. The suspense regarding the Date of Implementation continues; the reply given by the Minister in Rajya Sabha makes us feel that it is not with retrospective effect. Since private companies are involved, they will lobby and get it deferred as long as possible. After all, an outflow of money is involved.

Dear Pathak Ji,

Thank you for the update and for sharing the information with us. It is definitely useful for me. I kindly request you to please send me the calculation details on gratuity.

Thanks & Regards,

Uday
Cuttack, Orissa
9437833882

Hi,

I spoke to many people about gratuity, but everyone told me the bill has not yet passed from parliament. Is that true? Will private sector employees receive 10 lakhs rupees as gratuity?

Regards,
Kishor

If a person is working under a contractor in the same organization, who will be responsible for his payment of gratuity?

Regards,

K.K. Dubey (Atlas Pharma)

The Gratuity Act Amendment Bill, 2010, which has increased the gratuity limit to Rs 10 lakhs, has been passed by both Houses of Parliament. While replying to requests made by Labour Union leaders in Rajya Sabha, the Labour Minister has stated difficulties over giving effect to a retrospective implementation. However, there is a case for making it retrospective effect in the case of PSUs since the wage revision was in line with the Government, as recommended by Pay Commissions. As notifications are issued only after approval of the President of India, one has to wait and watch.

N. Gopalakrishnan.

The effective date will be 1st/7th April 2010 as it was done on the previous occasion. In 1997, the gratuity amendment bill was passed on 24th Sep '1997 by LOK SABHA and notified later, giving effect from 3rd April '1997.

The effective date will be 1st/7th April 2010 as it was done on a previous occasion. In 1997, the gratuity amendment bill was passed on 24th Sep 1997 by LOK SABHA and notified later, giving effect from 3rd April 1997.


More at https://www.citehr.com/253169-gratui...#ixzz0nyUAtMeT

The effective date will be 1st/7th April 2010 as it was done on the previous occasion. In 1997, the gratuity amendment bill was passed on 24th Sep '1997 by LOK SABHA and notified later, giving effect from 3rd April '1997. The effect would be given from the start of the Financial Year to avoid litigations from all corners, be it Public or Private.

more at https://www.citehr.com/253169-gratui...#ixzz0nyUAtMeT

The effective date will be 1st/7th April 2010 as it was done on a previous occasion. In 1997, the gratuity amendment bill was passed on 24th Sep 1997 by LOK SABHA and notified later, giving effect from 3rd April 1997. The effect would be given from the start of the Financial Year to avoid litigations from all corners, be it Public or Private.

For more information, visit [https://www.citehr.com/253169-gratuity-act-amendment-2010-a-2.html#post1138642#ixzz0nyZnticf](https://www.citehr.com/253169-gratuity-act-amendment-2010-a-2.html#post1138642#ixzz0nyZnticf)

Dear Sri Narasaiah,

The effective date of the Gratuity Amendment Act, 2010 will be known only after the Gazette Notification. As I have already indicated, we have to wait for the exact wordings of the notification which is expected to be issued after the President of India's approval. Please wait for a few more days.

N. Gopalakrishnan

Friends,

As of now, no firm date has been announced, and all employees who retired between 2006 and 2010 have to wait and see. The minister's response to a query by G. Sanjeevareddy (a noted Labour Leader) in the Rajya Sabha was not encouraging, and ultimately, the government may opt for a prospective date.

I hope this helps! Let me know if you need any further assistance.

The Gratuity Amendment Bill 2010, raising the ceiling from 3.5 lakhs to 10 lakhs, has been passed in both the Houses of Parliament on 4th & 5th May '10. It seems Gazette Notification is likely to take some time. I am on the verge of retirement from a State Govt. Undertaking where Payment of Gratuity is done as per the Gratuity Act - 1972. My date of Superannuation is 31st Aug. 10. Can I claim the enhanced amount by virtue of the amendment bill passed by parliament? Can anyone suggest on this matter? Thanks, Ashoke Dhole

Dear Sri Pathak,

You have attached only the bill as it was introduced. The Government notification is the one that is required to know the effective date of the enhancement of the ceiling. If this could be done, all our anxiety will be arrested. Thanks.

SR Sankaran

Dear Shri Jagadish Pathak,

Thank you for posting the Gratuity Amendment Bill 2010 on the website. Could you please let us know when the Gazette Notification is likely to be available? This is urgent as I am on the verge of retirement.

Thanks,
Ashoke Kr Dhole

One has to wait until the notification on the Gratuity Amendment Act is issued by the Government.

Please confirm the date from which this enhanced amendment of Rs. 10 lakhs in Gratuity limit is exempt from income tax beyond Rs. 3.5 lakhs in the case of employees of Public Sector Undertakings which are not purely Government undertakings. Kindly inform me.

Email: khanimran2050@yahoo.co.in

Dear Pathakji,

You have taken a lot of pains to post only the Bill that was introduced/passed in the Parliament and not the Notification to be issued by the Ministry (of Labour or Deptt of Personnel & Training). The bill is not the notification.

SR Sankaran

The amendment has received the President's assent on 17th May 2010, and the notification has been issued in The Gazette of India Extraordinary on 18th May 2010 Part-II Section-I. Therefore, the ceiling for gratuity payment has become Rs. 10 lakhs w.e.f. 17-5-2010.

Thank you.

The Gratuity Amendment Act 2010 was notified by the Government on 21st May 2010. The Amendment came into effect on 24th May 2010.

As for the PSU employees who retired after 01/01/2007, i.e., after the wage revision as per the PRC and approved by the Government, where the gratuity limit was increased to Rs 10 lakhs, it was expected that the Government would consider this favorably. However, it seems that the chapter has closed with this notification. There is discrimination between two sections of employees of the same Government regarding the tax implications.

Gratuity Amendment Act 2010; the PDF file is not opening with comments that it is a corrupt file when sending it via email. Please resend the above file again in the correct way.

Subject: Regarding Notification of Gratuity Amendment 2010

Dear Mr. R Hari,

I am writing to inquire about how we can access or locate the notification related to the Gratuity Amendment 2010. Please provide the necessary information at your earliest convenience.

Thank you for your attention to this matter.

Best regards

Please go to the Press Information Bureau website: www.pib.nic.in. Go to the link "Government Websites" and then proceed to the "Ministry of Labour and Employment" section. You will find the notification there.

I came to know that in the amendments of the Gratuity Act 2010, all teachers who are working in privately run institutions are eligible for gratuity. Is it correct? If so, may I get a copy of that G.O.?

Regards,
Ravindra K
Guntur

Dear Pathakji, I also request you to inform everyone about the exact effective date of the amended amount, i.e., from 22.4.2010 or a retrospective date: 1.1.2006/2007.

Regards,
prasadksn