The Payment of Gratuity (Amendment) Bill, 2018 has been passed by Lok Sabha on 15th March 2018 and by the Rajya Sabha on 22nd March 2018, has been brought in force on 29th March 2018. Background : The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main purpose of enacting this Act is to provide social security to workman after retirement, whether retirement is a result of superannuation or physical disablement or impairment of vital part of the body. Therefore, the Payment of Gratuity Act, 1972 is an important social security legislation to the wage-earning population in industries, factories and establishments. 1. The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar. Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was
Compliance Chambers is a research-based Indian law firm with offices in Delhi and Rajasthan and aims at providing strategic, legal and tax services across various sectors. The firm represents a myriad of client base, including business houses, MNCs, Financial Institutions, and Non-Governmental Organisations.The firm specializes in certain specific sectors, including Manufacturing, Healthcare, Food and Drug, Cosmetics, Outsourcing, Retail & Wholesale Trade and Real Estate Laws.