Current Affairs

Parliament Passes Payment of Gratuity (Amendment) Bill, 2018

Payment Gratuity ( Amendment) Bill 2017 has been passed by the Parliament of India to ensure the harmony amongst employees in the private sector and Public Sector Undertakings/Autonomous .

These employees receive higher amount of gratuity at par with their counterparts in Government sector.
Parliament Passes Payment of Gratuity (Amendment) Bill, 2018

Features of the Act

  • The act seeks to increase the maximum limit of the employees' gratuity in private as well as in the public sector undertakings Autonomous Organizations under Government who are not covered under CCS (Pension) Rules, at par with Central Government employees.
  •  It also demands the  calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave from 'twelve weeks' to such period as may be notified by the Central Government from time to time.
  • The maximum maternity leave, for the purpose of calculating continuous service under the Act, was based on the maternity leave provided under the Maternity Benefit Act, 1961.  The maximum maternity leave under the 1961 Act was changed from 12 weeks to 26 weeks by the Maternity Benefit (Amendment) Act, 2017. 
  • The Bill removes the reference to 12 weeks in the 1972 Act and empowers the central government to notify the maximum maternity leave.
  • The maximum amount of gratuity payable to an employee cannot exceed Rs 10 lakh.  The Bill removes the existing ceiling and states that the ceiling may be notified by the central government.    
Parliament Passes Payment of Gratuity (Amendment) Bill, 2018 Parliament Passes Payment of Gratuity (Amendment) Bill, 2018 Reviewed by Admin on March 23, 2018 Rating: 5

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