Gratuity - Maximum Sealing clarification - was paid only Rs.10 L, though i was eligible for more than that

mohanarangan5
I worked in a MNC for 17 years and relieved in 2017 oct, on my exit I was told by HR that there is a maximum sealing for paying gratuity ..ie Rs. 10L and I was paid only Rs.10 L, though i was eligible for more than that.
Pls clarify is there any such sealing for paying gratuity, also note I'm not talking about Income tax, I'm talking about overall payment. I'm aware that the tax free amount was 10L and the mount more than that would be taxable, which is later revised to 20 L.
Pls help clarify.
umakanthan53
Dear Mohanarangan,
As I am given to understand that the Central Govt have raised the ceiling of gratuity under the PG Act,1972 from Rs.10lakh to Rs.20 lakh w.e.f 29-03-2018. For the sake of ready reference let me give an extract of the notifications issued by the Central Govt in this regard as below:
SR 1419(E):-
In exercise of the powers conferred by sub section (2) of Section 1 of the Payment of Gratuity ( Amendment ) Act,2018 (12 of 2018), the Central Government hereby appoints the 29th day of March 2018 as the date on which the said Act shall come into force.
SR 1420(E):-
In exercise of the powers conferred by sub section (3) of Section 4 of the Payment of Gratuity Act,1972 ( 39 of 1972), the Central Government hereby specifies that the amount of gratuity payable to an employee under the said Act shall not exceed twenty lakh of Rupees.
On a careful analysis of your post. I think that you base your claim for more than the statutory maximum on the taxable threshold amount. Well, such an argument would be tenable only when there is any award or agreement or contract with the employer to receive gratuity under any better terms as per sec.4(6) of the Act.
Since you had retired from service in October,2017, the legally entitled maximum amount of gratuity on the date of your retirement is Rs.10 lakh only. Even if the amount of gratuity actually calculated on the basis of your actual inputs exceeded Rs.10 lakh, the employer can limit it to the statutory ceiling. Therefore, in the absence of better terms of gratuity under any award or agreement or contract as contemplated by sec.4(6) of the P.G Act,1972, you are not entitled to get more gratuity beyond the ceiling as on the date of termination of your employment.
nathrao
First of all it is ceiling not sealing.
Secondly the date of applicability as rightly pointed out for enhanced gratuity is Mar 2018.
Employer can pay more if his rule permits.The tax free amount earlier was 10 lakhs now enhanced to 20 lakhs.
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