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Brief on Payment of Gratuity (Amendment) Act, 2018

May 31, 2018 admin 1 Comment

Brief on Payment of Gratuity (Amendment) Act, 2018

” Representatives are requesting to this Ministry that the effective date of Payment of Gratuity (Amendment) Act, 2018 will 01.01.2016 instead of 29.03.2018 at par with the Central Government employees’

1. The Payment of Gratuity (Amendment) Bill, 2018 has been passed the 14th Sabba Sabha on 15.03.2018 and 22.03.2018 respectively and assented to by the Hon’ble President on 28th March, 2018.

2. The Government vide notification No.1420(E) dated 29th March, 2018 has enhanced the gratuity ceiling under the Payment of Gratuity Act, 1972 from Rs.10 lakh to Rs.20 Lakh with effect from 29th March, 2018.

3. A Large number of representations have been received in this Ministry from the Unions/Organizations/Individuals physically, through Social Media (Facehook/Twitter etc.) and PG Portal whereby the representatives are requesting to this Ministry that the effective date of Payment of Gratuity (Amendment) Act, 2018 will 01.01.2016 instead of 29.03.2018 at par with the Central Government employees’

4. In this regard, it is infirmed that on earlier occasions also, the enhancement in gratuity ceiling under the Payment of Gratuity Act, 1972 has been implemented with prospceiive date only. Further, implementation of the same with effect will be administratively difficult and employers may not have sufficient liquidity to meet the arrears liabilities.

Related updates:

    Payment of Gratuity Act, 1972 for Employees of NVS Covered under NPS

Filed Under: Gratuity

Comments

  1. babita says

    March 25, 2019 at 1:33 pm

    Kindly provide me soft copy of punjab govt labour commisioner notification no. 9/3/93-2Lab-II/71 dated 8.1.2004 vide which PSEb and its employees are exempted from provisions of payment of gratuity act, 1972.

    Reply

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