Bill to raise gratuity ceiling introduced in LS

The Payment of Gratuity (Amendment) Bill 2010, introduced by Minister of State for Labour Harish Rawat, seeks to amend the Gratuity Act to enhance the amount of gratuity payable to an employee from Rs 3.5 lakh to Rs 10 lakh.

The legislation was brought following demands from trade unions and others to remove the ceiling or increase the maximum payable amount which was fixed in 1997. Based on these representations, the bill proposes to enhance the ceiling of gratuity.