Payment of gratuity act blogs, comments and archive news on. The payment of gratuity amendment bill, 2017 was introduced in lok sabha by the minister for labour and employment, mr. Be it enacted by parliament in the sixtyeighth year of the republic of india as follows. Cma inter law and ethicspayment of gratuity act 1972. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. 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. Click here to read the full press note of gratuity amendment act 2018. Payment of wages uttar pradesh amendment act, 2017. 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. The students are advised to read their study material along with these updates.
The enhancement in gratuity benefit is bound to delight the private sector employees and bring them at par with the government employees. 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. Payment of gratuity amendment bill, 2018 passed by. The bill seeks to amend the payment of gratuity act, 1972. 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. Payment of gratuity amendment act, 2018 wealthtechspeaks. Gratuity is a benefit received by an employee for services rendered to an organisation. The payment of gratuity act, 1972 gratuity eligibility. 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 gratuity amendment bill, 2017 vramonline. Under the act, gratuity is payable on termination of employment upon an employee completing at least five years of. 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. Analysis of payment of gratuity amendment bill 2017. This amendment has aimed to ensure harmony amongst employees.
Gratuity payable as per the payment of gratuity act, 1972 of india gratuity act, is considered. The amendment is a welcome move for the individuals as it enhances the maximum benefit under the act from 10 lakhs to 20 lakhs. 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. 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 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. Category pen proposed amendment in payment of gratuity act applicable to industrial workers including bank employees on retirements we forward herewith the proposal placed for approval of the parliament to increase the gratuity payable to industrial workers including bank employees. Payment of gratuity amendment act, 2018 12 of 2018 ministry of. Key amendments in payment of gratuity act employment and. Gazatte notification for the gratuity increase from 10 lac to 20 lac.
Payment of gratuity amendment bill, 2017 gk updates. Payment of gratuity act latest breaking news, pictures, videos, and special reports from the economic times. 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. 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. Payment of gratuity amendment act, 2018 12 of 2018. The present bill sought to remove the reference of 12 weeks in the act and empowers the government to notify the maximum maternity leave.
The parliament passed the payment of gratuity amendment bill, 2018 as on 22032018. The payment of gratuity act, 1972 applies to establishments employing 10 or more persons. 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. Gratuity is given by the employer to an employee for the services rendered by him. Rajya sabha has also passed this amendment act on 22nd march. Payment of gratuity amendment act, 2018 came into force on 29 th march, 2018.
Friends, i am attaching payment of gratuity amendment bill 2017 as introduced in lok sabha today. 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. On assent by honble president of india, the same will be made in force by notification in the official gazette. The main purpose for enacting this act is to provide social security to workman after. Payment of gratuity amendment bill 2017 introduced in lok sabha. The amendment to the payment of gratuity law comes in the backdrop of maternity benefit amendment act, 2017 enhancing the.
The bill seeks to double the ceiling of taxfree gratuity to rs 20 lakh. 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 gratuity amendment act, 2018 brought in force. Gratuity limit increased to 20 lakhs gazette notification. 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. Payment of gratuity amendment bill 2017 introduced in. 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.
Payment of wages amendment act, 2017 pdf download citehr. 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. For companies covered under the gratuity act, this benefit is paid. Gratuity law in pakistan gratuity is one of three prevalent retirement benefits in the private sector employment.
Santosh kumar gangwar, minister for labour and employment. 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. The bill will amend various provisions in the existing act the payment of gratuity act, 1972. 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. 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 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.
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. After the implementation of the 7th pay commission, the ceiling of gratuity amount for central government employees was doubled tors. The center has approved an amendment bill for payment of gratuity act, that doubles the amount of taxfree gratuity limit. Cabinet approves introduction of the payment of gratuity amendment bill, 2017 in the parliament. Cabinet approves introduction of the payment of gratuity. Be it enacted by parliament in the twentythird year of. The payment of gratuity act, 1972 applies to the establishments employing 10 or more persons.
The act increases the ceiling of the amount of gratuity payable to employees from rs. In brief on 29th march 2018, central government notified the payment of gratuity amendment act, 2018 the act. Payment of gratuity amendment bill passed in parliament. Please find the copy of payment of wages amendment act, 2017 enclosed herewith. Download payment of gratuity amendment bill 2017 file in. Proposed amendment in payment of gratuity act applicable. Be it enacted by parliament in the sixtyninth year of the republic of india as. Home payment of gratuity amendment act, 2018 12 of 2018 payment of gratuity amendment act, 2018 12 of 2018 language english. Lok sabha passed payment of gratuity amendment act, 2018 on 15th march 2018 which. 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. 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. Passage of the said bill will hugely benefit the middle and senior management employees who are getting higher salaries.
Amendment the legislation will enable the government to enhance the ceiling of tax free gratuity tors. Lok sabha passes payment of gratuity amendment bill, 2017. The payment of gratuity amendment bill, 2018 has been passed by lok sabha on 15th march, 2018 and by the rajya sabha on. 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. The amendment will increase the maximum limit of gratuity of employees, in the private sector and in public sector undertakings. Lok sabha passed the payment of gratuity bill 2017 today. Need to bring in the amendment bill was felt as unions have been demanding for inclusion of this change into the act. 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. Max ceiling of rs 10 lacs to be removed central govt to be authorised to fix ceiling from time to time by notification. 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. 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.
Payment of gratuity amendment bill 2017 amends payment. Payment of gratuity amendment bill 2017 amends payment of gratuity act of 1972, current affairs study iq education. 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. The payment of wages act, 1936 is a central government act but states can frame their rules under it. 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. The students are advised to read their study material along with. This amendment bill raises the ceiling of gratuity to be paid from the present level of rs.
Payment of gratuity amendment act, 2018 brought in force on 29th. The payment of gratuity amendment bill, 2017 was introduced in lok sabha by mr. This act may be cited as the payment of gratuity act, no. As we know, the ceiling of gratuity is already increased to rs. Gratuity limit revised latest amendment in gratuity act. 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.