A bill to raise the ceiling of gratuity for employees to Rs one million (Rs 10 lakh) from the current level of Rs 3,50,000 was introduced in the Lok Sabha on Thursday.
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 3,50,000 to Rs one million (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.
