Home payment of gratuity amendment act, 2018 12 of 2018 payment of gratuity amendment act, 2018 12 of 2018 language english. The parliament passed the payment of gratuity amendment bill, 2018 as on 22032018. In brief on 29th march 2018, central government notified the payment of gratuity amendment act, 2018 the act. Payment of gratuity act blogs, comments and archive news on.
Payment of gratuity amendment act, 2018 the payment of gratuity act, 1972 was enacted to provide for a scheme for the payment of gratuity to employees engaged in factories. Payment of gratuity amendment bill 2017 amends payment of gratuity act of 1972, current affairs study iq education. After the implementation of the 7th pay commission, the ceiling of gratuity amount for central government employees was doubled tors. The enhancement in gratuity benefit is bound to delight the private sector employees and bring them at par with the government employees. Max ceiling of rs 10 lacs to be removed central govt to be authorised to fix ceiling from time to time by notification. At present, the taxfree ceiling limit for gratuity amount underpayment of gratuity act 1972 is 10 lakhs, but after implementation of 7th central pay commission the gratuity limit for central government employees under central civil services pension rules 1972 has been increased to 20 lakhs. Need to bring in the amendment bill was felt as unions have been demanding for inclusion of this change into the act.
Payment of wages act,1936 is amended in its application to uttar pradesh after receiving assent of the president on january 10,2018 and published in the up gazette dated 29 th january,2018 with the name of payment of wages uttar pradesh amendment act, 2017 which states. The union cabinet chaired by the prime minister shri narendra modi has given its approval for introduction of the payment of gratuity amendment bill, 2017 in the parliament. Payment of gratuity amendment act, 2018 12 of 2018. Friends, i am attaching payment of gratuity amendment bill 2017 as introduced in lok sabha today. Payment of gratuity act latest breaking news, pictures, videos, and special reports from the economic times. As per the official statement released on 12th sep 2017 the union cabinet chaired by prime minister narendra modi has given its approval to introduction of the payment of gratuity amendment bill, 2017, in parliament. Cabinet approves introduction of the payment of gratuity amendment bill, 2017 in the parliament. The bill seeks to double the ceiling of taxfree gratuity to rs 20 lakh. Cabinet approves introduction of the payment of gratuity.
Payment of gratuity amendment act, 2018 12 of 2018 ministry of. Cma inter law and ethicspayment of gratuity act 1972. The act provides for payment of gratuity at the rate of 15 days wage s for each completed year of service subject to a maximum of rs. After the amendment of the maternity act in 2017, the maximum maternity leave under the maternity act was changed from 12 weeks to 26 weeks. This amendment has aimed to ensure harmony amongst employees. Passage of the said bill will hugely benefit the middle and senior management employees who are getting higher salaries. Government introduces payment of gratutity amendment bill, 2017 in lok sabha december 19, 2017 the centre has on monday introduced the payment of gratuity amendment bill, 2017 in the lok sabha that empowers it to notify the period of maternity leave and gratuity ceiling that can be availed by the employees from time to time. Please find the copy of payment of wages amendment act, 2017 enclosed herewith. Lok sabha passed payment of gratuity amendment act, 2018 on 15th march 2018 which empowered central government to notify changes in sub section 3 of section 4 for gratuity ceiling and section 2a for maternity leave. The lok sabha has passed payment of gratuity amendment bill, 2017 to empower government to fix period of maternity leave and taxfree gratuity amount with an executive order. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. Payment of gratuity amendment bill, 2018 passed by. Pib press release dated 12th september, 2017 the union cabinet chaired by the prime minister shri narendra modi has given its approval for introduction of the payment of gratuity amendment bill, 2017 in the parliament. Gratuity limit revised latest amendment in gratuity act.
Paslegisb342015the sindh payment of wages bill, 2015 having been passed by the provincial assembly of sindh on 30 th january, 2017 and assented to by the governor of sindh on 10th march, 2017 is hereby published as an act of the legislature of sindh. Gratuity is given by the employer to an employee for the services rendered by him. The students are advised to read their study material along with these updates. The parliament has passed payment of gratuity amendment bill, 2017 to empower government to fix period of maternity leave and taxfree gratuity amount with an executive order. The act increases the ceiling of the amount of gratuity payable to employees from rs. Government introduces payment of gratutity amendment. The bill will amend various provisions in the existing act the payment of gratuity act, 1972. Gratuity limit increased to 20 lakhs gazette notification.
Key amendments in payment of gratuity act employment and. Download payment of gratuity amendment bill 2017 file in. Rajya sabha has also passed this amendment act on 22nd march. The main purpose for enacting this act is to provide social security to workman after. Be it enacted by parliament in the sixtyeighth year of the republic of india as follows. The payment of gratuity amendment bill, 2017 was introduced in lok sabha by mr. Payment of gratuity amendment bill passed in parliament. Payment of gratuity amendment act, 2018 brought in force. The amendment is a welcome move for the individuals as it enhances the maximum benefit under the act from 10 lakhs to 20 lakhs. Brief on payment of gratuity amendment act, 2018 representatives are requesting to this ministry that the effective date of payment of gratuity amendment act, 2018 will 01. Lok sabha passes payment of gratuity amendment bill, 2017. The payment of gratuity amendment bill, 2018 has been passed by lok sabha on 15 th march, 2018 and by the rajya sabha on 22 nd march, 2018, has been brought in force on 29 th march, 2018. Payment of wages uttar pradesh amendment act, 2017. The amendment will increase the maximum limit of gratuity of employees, in the private sector and in public sector undertakings.
Introduced in 1972, the act was enacted to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops and other establishments. In exercise of the powers conferred by subsection 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. Amendment the legislation will enable the government to enhance the ceiling of tax free gratuity tors. These academic updates are to facilitate the students to acquaint themselves with the amendments in the employees compensation act, 1923 and the payment of gratuity act, 1972. The bill seeks to amend the payment of gratuity act, 1972. There is change in gratuity act 1972 as amended by payment of gratuity amendment act, 2018 brought in force on 29th march, 2018 a good news for. The payment of gratuity amendment bill, 2017, inter alia, proposes to amend a section 2a of the act so as to empower the central government to notify the. The payment of gratuity amendment bill, 2017 was introduced by labour minister santosh kumar gangwar in the house, amid continued sloganeering by opposition members and counterslogans by those. Gratuity law in pakistan gratuity is one of three prevalent retirement benefits in the private sector employment.
Gratuity is a benefit received by an employee for services rendered to an organisation. Be it enacted by parliament in the sixtyninth year of the republic of india as. The payment of gratuity act, 1972 applies to the establishments employing 10 or more persons. The payment of gratuity act, 1972 gratuity eligibility. The act is applicable, to factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, and to shops and other establishments, employing 10 or more workmen. Gratuity payable as per the payment of gratuity act, 1972 of india gratuity act, is considered. Gazatte notification for the gratuity increase from 10 lac to 20 lac. Payment of gratuity act, 1972 an act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto.
Santosh kumar gangwar, minister for labour and employment. The payment of wages act, 1936 is a central government act but states can frame their rules under it. The center has approved an amendment bill for payment of gratuity act, that doubles the amount of taxfree gratuity limit. On assent by honble president of india, the same will be made in force by notification in the official gazette. Gratuity limit revised latest amendment in gratuity act 2017 posted by hrlaptop on september 12, 2017 november 17, 2017 the center has approved an amendment bill for payment of gratuity act, that doubles the amount of taxfree gratuity limit.
Under the act, gratuity is payable on termination of employment upon an employee completing at least five years of. This act may be cited as the payment of gratuity act, no. The payment of gratuity amendment act, 2018 received presidential assent on 28th march, 2018 and came into force on 29th march, 2018 notified by the ministry of labour and employment. Analysis of payment of gratuity amendment bill 2017. Payment of gratuity amendment bill, 2017 gk updates. Gazette notification would come after the payment of gratuity amendment act 2017 is passed by both the houses of parliament and after it.
Payment of wages amendment act, 2017 pdf download citehr. The gratuity was paid to persons who are covered within the meaning of the term employee under section 2e of the act, subject to the conditions mentioned in section 4 of the payment of gratuity act, 1972. The bill seeks to amend payment of gratuity act, 1972 on two issues related to maternity leave and ceiling of gratuity payable to an employee. Payment of gratuity amendment bill 2017 amends payment. Payment of gratuity amendment act, 2018 brought in force on 29th. An act further to amend the payment of gratuity act, 1972. Thus, after passage of payment of gratuity amendment bill, 2017 in rajya sabha, centre may notify taxfree gratuity of rs 20 lakh for the organised sector. The payment of gratuity amendment bill, 2017 was introduced in lok sabha by the minister for labour and employment, mr. Lok sabha passed payment of gratuity amendment act, 2018 on 15th march 2018 which. Payment of gratuity amendment act, 2018 wealthtechspeaks. The much waited social security measure, payment of gratuity amendment bill, 2017 was passed by rajya sabha on 22 nd march, 2018 after it was passed in the lok sabha on 15 th march, 2018. The payment of wages amendment ordinance, 2016 was passed on 28th december, 2016, which contains same provisions which are given in this amendment act, 2017. The amendment to the payment of gratuity law comes in the backdrop of maternity benefit amendment act, 2017 enhancing the. The employees compensation act, 1923 provides for payment of compensation to the employees and their dependants in the case of injury by industrial accidents including certain occupational diseases arising out of and in the course of employment resulting in death or disablement.
For companies covered under the gratuity act, this benefit is paid. The payment of gratuity act 1972 the payment of gratuity amendment act, 2018 provides for the payment of gratuity to employees engaged in industries including mines, oilfields, plantations, shops, factories, amongst others. Payment of gratuity amendment act, 2018 came into force on 29 th march, 2018. The payment of gratuity amendment bill, 2018 has been passed by lok sabha on 15th march, 2018 and by the rajya sabha on. Payment of gratuity amendment bill, 2017 vramonline. The payment of gratuity act, 1972 applies to establishments employing 10 or more persons. Payment of gratuity amendment bill 2017 introduced in. Click here to read the full press note of gratuity amendment act 2018. This amendment bill raises the ceiling of gratuity to be paid from the present level of rs. Be it enacted by parliament in the twentythird year of.