Payment of Gratuity (Amendment) Bill, 2017

The Payment of Gratuity (Amendment) Bill, 2017, has been introduced in Lok Sabha for the reason of following amendments:

• The present ceiling of gratuity amount of Rs. 10 lakhs was fixed in the year 2010. Now, the central Labour Ministry paves the way for revising the ceiling by the Central Government, keeping in view of increasing in wages, inflation and future pay commissions.

• The period of 12 weeks of maternity leave for calculating continuous service under Section 2A of the gratuity act is going to change. The Central Government had fixed the line with other maternity benefits related legislations. Since the above said amendments are normal in character, it has been proposed to empower the Central Government to notify the ceiling time to time instead of amending the said gratuity act through bill approach as it would take own time and usual Parliamentary procedure.

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