Gratuity Limit Increase to Rs. 10 Lakh: What Does the Delay in Implementation Mean for You?

The Payment of Gratuity Act 2010 has been enacted, wherein the Gratuity limit has been increased to Rs. 10 Lakh from 3.5 Lakh. However, the date of implementation is yet to be notified.

Regards,
Anil Kaushik
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Hi,

Please be informed that the limit for the increase in gratuity has not been amended yet. It has only been noted in parliament, but no official action has been taken regarding it.

Regards, Kapil Kotwal Manager-HR

Dear Kapil, Your input is confusing. What is official or unofficial? It is not a grapevine. After having passed in both the houses of parliament, the bill is sent to the president of the country. The bill converts into an Act only when the president gives consent. The Payment of Gratuity Act has been approved by the president after the parliament passed the bill. That's why it is called the Payment of Gratuity Amendment Act of 2010. Now what is left is the date of implementation, which at any time the government can notify. For this date, the government need not go to parliament and the president again.

Hope the things are clear to you now.

Regards, Anil Kaushik

Government Notification on Gratuity Act Implementation

The government has now notified that the effective date is from 24th May 2010. However, it remains a moot point as to who decides the effective date and what the criteria are; everything seems hazy. Parliament nods okay. But why is the same parliament silent about the date of implementation, and why does such a powerful parliament shrug its responsibility of the date of implementation?

A man or woman retiring on the 24th gets Rs. Ten lakhs, and a man or woman retiring a day (or a month) earlier receives six and a half lakhs less. He or she would be in tears. This is pathetic.

Regards,
T.K. Chandrasekaran, SBI, Chennai 7024.