Gratuity Limit Increased to Rs.10 lacs wef 18-May-2010

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GRATUITY LIMIT INCREASED TO 10 LAKHS EVEN FOR BANKERS

AMENDMENTS TO PAYMENT OF GRATUITY ACT 1972

The long and much awaited amendment to Payment of Gratuity Act 1972 has finally been notified on 18th May, 2010, whereby the ceiling for gratuity payments has been increased to Rs. 10 lacs (earlier it was Rs.3.50 lacs). The contents of the notification are as follows:-

[Click Here To Know More Details About the Impact of this amendment on bankers]

“ MINISTRY OF LAW AND JUSTICE (Legislative Department)

New Delhi, the 18^th May, 2010/Vaisakha 28, 1932 (Saka)

The following Act of Parliament received the assent of the President on the 17^th May, 2010 and is hereby published for general information:-

THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010 (No. 15 OF 2010) [17^th May, 2010]

An Act further to amend the Payment of Gratuity Act, 1972.

Be it enacted by Parliament in the Sixty – first Year of the Republic of India as follows:-

1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2010.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Short title and commencement

2. In section 4 of the Payment of Gratuity Act, 1972, in sub-section (3), for the words “three lakhs and fifty thousand rupees”, the words “ten lakh rupees” shall be substituted.

Amendment of section 4 of Act 39 of 1972.