Question : Ceiling of Gratuity

(a)whether the Government has enhanced ceiling of gratuity from Rs. 10 lakhs to Rs. 20 lakhs after the implementation of 7th Pay Commission making it effective from 01.01.2016 for all Central Government employees and if so, the details thereof;
(b)whether the Government has received several requests from workers’ representatives belonging to public sector units and the private sector for doubling the limit for gratuity payout on par with Central Government employees;
(c)if so, whether the Government has implemented increased gratuity for employees engaged in private and public sector effective from 29.03.2018 and if so, the details thereof and the reasons for discrimination and double standard;
(d)whether the Government has received representation from trade unions against this discrimination and if so, the details thereof; and
(e)whether trade unions have also threatened to go for widespread protest against the motivated and anti-worker approach and if so, the corrective steps taken by the Government employees?

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)

(a): Yes, Sir. The maximum limit of retirement gratuity and death gratuity under the Central Civil Services (Pension) Rules, 1972, has been enhanced from Rs.10.00 lakh to Rs. 20.00 lakh w.e.f. 01.01.2016 for Central Government civil employees in implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission.
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(b) to (d): Letters/representations/grievances etc. have been received inter-alia from individuals, associations, public representatives requesting to provide the benefit of enhanced gratuity under the Act retrospectively with effect from 01.01.2016.
Following the enactment of the Payment of Gratuity (Amendment) Act, 2018 by the Parliament on 28.03.2018, the corresponding notification was issued by the Government on 29.03.2018 enhancing the gratuity ceiling under the Act from Rs. 10 lakh to Rs. 20 lakh with effect from 29.03.2018. On the earlier occasions too, the ceiling of the gratuity amount was enhanced from the prospective date(s) only.

(e): The Government has, till date, not received any notice in this regard.

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