Gratuity Amendment

rtanjit776
Sir,
Could you kindly clarify whether the Gratuity of Rs 10 lakhs ceiling to be paid to person retiring after 2006 has been overruled by this amendment of the Gratuity Act 2010 and is only applicable for persons retiring in May 2010 and thereafter?
Nothing has been clarified regarding this in the amendment.
Regards
Ranjit Dutta
R.N.Khola
Dear Ranjit,
Attach both the notification to clarify the situation. In my opinion you are mixing the matter of payment of gratuity to be made to Govt. employees who are governed by Civil Service Rules with those of the employees who are to get gratuity payment under the Payment of Gratuity Act, 1972.
Regards,
R.N.Khola


rtanjit776
Perhaps I was not clear enough with my query. I refer to the Sixth Pay Commission where we were entitled to Rs 10 Lakhs as Gratuity but were not paid the amount as the clearance was not received from DPE. For information the Cabinet had cleared the entire Sixth Pay Commission recommendation except for certain allowances, including the Gratuity portion. However with the amendment to the Gratuity Act where the ceiling was raised to 10 lakhs wef 24th May 2010, we find that we are not being paid the enhanced Gratuity for persons who retired in the period before the amendment. As per my understanding the amendment means that the amount of Rs 10 lakhs enhancement indicates that the same is non taxable only with effect from that date and not that the payment is to commence from 24th May. May pl clarify.
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