Payment of gratuity Bill okayed in Parliament
The Payment of Gratuity Act, 1972, was enacted to provide for gratuity payment to staff.
New Delhi: The Rajya Sabha on Thursday passed the Payment of Gratuity (Amendment) Bill 2017, which seeks to double the limit of tax free gratuity to '20 lakh and empower the government to fix the ceiling of the retirement benefit through an executive order.
The Bill will also empower the government to fix the period of maternity leave through executive order. Prime Minister Narendra Modi tweeted: “A significant pro-people measure passed in Parliament. Will benefit lakhs of Indians.”
The Bill, which was passed by the Lok Sabha on March 15, was passed by the Rajya Sabha after chairman M. Venkaiah Naidu held a meeting of leaders of opposition parties, who had been protesting on various issues, resulting in adjournment of the Upper House.
As all parties agreed to clear the bill, it was passed through a voice vote without a discussion, within of four minutes of being moved by Union labour minister Satosh Gangwar.
The bill notifies the period of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity ceiling from time to time without amending the law.
The labour ministry later said in a statement that the Bill also envisages amending the provisions relating to 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.
After implementation of the 7th Central Pay Commission, the ceiling of tax free gratuity amount for central government employees was increased from '10 lakh to Rs 20 lakh. The labour unions have been demanding for inclusion of the change in the Act.