Amendment to the Payment of Gratuity Act, 1972

The Union Cabinet today gave its approval to accept one recommendation of the Standing Committee of giving effect to the amendments retrospectively with effect from 3rd April, 1997 and to move Payment of Gratuity (Amendment) Bill, 2008 in the Parliament. The Cabinet also gave its approval for withdrawal the Payment of Gratuity (Amendment) Bill, 2007 from the parliament.

This will result in coverage of teachers in the educational institutions under the Payment of Gratuity Act, 1972 with effect from 3rd April, 1997.

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Comments (3)

The government would bring in the budget session of Parliament, a comprehensive bill on gratuity which would address issues like raising the gratuity ceiling from Rs. 3.5 lakh, in the light of the Sixth Pay Commission report that recommended raising it to Rs. 10 lakh. The proposed bill may take into account broadening the scope of gratuity benefits to cover contract labour, unorganised labour, seasonal labour and farm labour among others, the Minister of State for Labour Harish Rawat assured the Rajya Sabha members on Friday. “We are discussing this with the stakeholders,” he added.

harismandal ji u r not affected by the aforesaid amendment rather its aplicability has been extended to the teachers with retrospective effect.

Am i affected . I retd from Army on 31 Jan 2009. My Gratuity is restricted to Rs 3.5 Lakhs by CDA PENSION Allahabad . cAN SOMEBODY HELP ?

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