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Amendment in the Payment of Gratuity Act, 1972- enhancement of ceiling of the payment of Gratuity to the employees of CPSEs thereon

Amendment in the Payment of Gratuity Act, 1972- enhancement of ceiling of the payment of Gratuity to the employees of CPSEs thereon No.W-02/0020/2018

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Amendment in the Payment of Gratuity Act, 1972- enhancement of ceiling of the payment of Gratuity to the employees of CPSEs thereon

No.W-02/0020/2018-DPE (WC)-GL-XII/18
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises
Public Enterprises Bhawan,
Block No.14, CGO Complex,
Lodhi Road, New Delhi-110003.
Dated, the. 11th April, 2018
OFFICE MEMORANDUM

Subject- Amendment in the Payment of Gratuity Act, 1972- enhancement of ceiling of the payment of Gratuity to the employees of CPSEs thereon -regarding.

In continuation of this Department’s OM No 2(25)/10-DPE(WC)-GL-XK2010 dated 02.06.2010 on the subject cited above, the undersigned is directed to state that the Payment of Gratuity Act, 1972 has been amended vide the Payment of Gratuity (Amendment) Act, 2018 (No. 12 of 2018), Notification dated 29.03.2018 published in the Gazette of India. In pursuance of the Amendment, sub-section (3) of Section 4 of the Payment of Gratuity Act, 1972 has been amended to substitute the words “ten lakh rupees” with the words “such amount as may be notified by the Central Government from time to time”.
2. Ministry of Labour & Employment(M/o L&E)’s Notification No S.O.l.419(E) dated 29.03.2018 has indicated that Central Government hereby appoints the 29th day of March, 2018 as the date on which the said Act shall come into force. Further, M/o L&E vide Notification No. S.RO. 1420(E) dated 29.03.2018 has notified that Central Government hereby specifies that the amount of gratuity payable to an employee under the Act shall not exceed twenty lakh rupees.
3. The administrative Ministries/Departments are requested to bring the above to the notice of all the CPSEs under their administrative control for information and compliance 

Sd/-
(Samsul Haque)
Under Secretary
enhancement-gratuity-limit-cpse-employees
[https://dpe.gov.in/amendment-payment-gratuity-act-1972-enhancement-ceiling-payment-gratuity-employees-cpses-thereon]

COMMENTS

WORDPRESS: 1
  • Prof. L.K.Jain 1 year ago

    I was working as faculty member, Professor in Department of Architecture, in Madhav Institute of Technology and Science, Gwalior, a grant in aid institute by M. P. Govt. On 30/09/2018, I was retired from the service at the age of 62 years.
    On retirement I was paid only ₹3.50 lakh instead of ₹20.00 lakh as Gratuity payment. I have requested the Director, MITS and also to the Chairman, Board of Governors, Mr. Jyotiraditya M. Scindia, but no action has been taken till date to pay the balance amount. I have been informed by the Director, MITS, Gwalior that payment of ₹3.50 (the maximum limit) has been made as per the decision of Board of Governors.
    Is the decision of payment of truncated amount against Gratuity is as per law or the institute shall pay the balance amount of ₹16.50lakh as per Gratuity Act.