Is the Enhanced Gratuity from 3.50 to 10 Lakhs Effective from 1/1/2006 for Central Govt Employees?

Please advise on the details of the gazetted notification for the effective date for enhanced gratuity from 3.50 lakhs to 10 lakhs. Will it be effective from 1/1/2006 as done for Central Government employees?

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Understand Gazette Notification for Amendment to the Payment of Gratuity Act 2010 has been published on Monday, 24th May night. Kindly confirm.
RK Kapoor

Hi Anil Kaushik,

I have posted the Payment of Gratuity Amendment Act 2010 in the labor-employee relations segment of this site. Now, the government can notify the date of implementation at any time.

Regards,
Anil Kaushik

I understand that it will be effective from the date it is published in the Gazette. From newspaper reports, I understand that regarding the effective date questions raised in Rajya Sabha, the Labour Minister replied that the government is willing to give as much as possible, but they also need to consider the paying capacity of the companies. As such, they are not willing to offer a retrospective effect for private sector employees.

If you feel it is an injustice to private sector employees, you need to file a PIL. It will help many private sector employees who have retired since January 2006.

Regards

Who all are covered under the payment of gratuity? Is it only factories, or are shops, hotels, etc., also included? Please clarify.

Jayasimha

Gratuity Enhancement Discrepancy

While the Central Government employees received an enhancement of gratuity to Rs. 10 lakhs with effect from 1.1.2006, there is a clear-cut discrimination for the rest of the employees, including Central Public Sector employees, as the date of effect is 24.5.2010. This is contrary to the expectations from this category of employees as we expected it to be effective from 1.1.2007.

In this line, the wage revision for the executives of CPSEs has included a clause on the enhancement of gratuity to Rs. 10 lakhs with effect from 1.1.2007. Moreover, in the absence of a pension scheme for the CPSEs employees when compared to the Central Government employees, we feel the enhancement of gratuity to Rs. 10 lakhs w.e.f. 1.1.2007 might have helped us a lot.

Is there any possibility to file a PIL in the High/Supreme Court on the action of the Government of India Gazette Notification?

Regards,
R. Ram Mohan, President, Bharat Earth Movers Employees Association, Kolar Gold Fields-563 115, Karnataka.

I think PSU employees received a gratuity of Rs. 10 lakh as per the Pay Committee report and not as per the Payment of Gratuity Act, which had a ceiling of Rs. 3.5 lakh. This payment should be regulated under gratuity other than under the Payment of Gratuity Act and at par with government employees in terms of the provisions of the Income Tax Act.

The case and point raised are worth taking up at any forum.

Dear Friends,

I am attaching the gratuity amendment bill for your reference and records.

Alphonse