Gratuty hike in sixth pay commission

Government is close on heels of raising the gratuity limit for central government employees upto Rs 10 lakh in the Sixth Pay Commission, the government in a bid to facilitate greater flow of welfare benefits from employer to employee in the private sector would soon be amending the payment of gratuity Act 1972, said S Mallikarjun Kharge, minister for labour and employment.

The gratuity ceiling currently capped at Rs 3.5 lakh even if employee accumulates more money after completing 5 years of service with an organisation would be upwardly revised up to Rs 10 lakh even for the private sector employees, Govt. is actively considering to amend the Act at the next convening session of Parliament and the Cabinet will be holding detailed consultations with the various stakeholders and the standing committee of Parliament before introducing amendment provisions.