Tag Archives: Gratuity

GRATUITY CEILING INCREASED UP TO RS. 20 LAKH

28 Wednesday Mar 2018

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Ministry of Labour & Employment
Payment of Gratuity (Amendment) Bill, 2018 passed by Parliament

The Payment of Gratuity (Amendment) Bill, 2018 has been passed by parliament today. The bill ensures harmony amongst employees in the private sector and Public Sector Undertakings/Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. These employees will be entitled to receive higher amount of gratuity at par with their counterparts in Government sector. The bill was passed by the Rajya Sabha today and the Lok Sabha on 15 March, 2018.
The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main purpose for 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 wage earning population in industries, factories and establishments.

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 Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling has been raised to Rs. 20 Lakhs.

Therefore, considering the inflation and wage increase even in case of employees engaged in private sector, this Government decided that the entitlement of gratuity should also be revised in respect of employees who are covered under the Payment of Gratuity Act, 1972. Accordingly, the Government initiated the process for amendment to Payment of Gratuity Act, 1972 to increase the maximum limit of gratuity to such amount as may be notified by the Central Government from time to time.
In addition, the Bill also envisages to amend the provisions relating to calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave from ‘twelve weeks’ to such period as may be notified by the Central Government from time to time.

After enactment of the Act, the power to notify the ceiling of the amount of gratuity under the Payment of Gratuity Act, 1972 shall stand delegated to the Central Government so that the limit can be revised from time to time keeping in view the increase in wage and inflation and future pay commissions. (PNB dated 27-03-2018)

CABINET APPROVES INTRODUCTION OF THE PAYMENT OF GRATUITY (AMENDMENT) BILL, 2017 – Gratuity increased to Rs.20 Lakh for all workers.

13 Wednesday Sep 2017

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CABINET APPROVES INTRODUCTION OF THE PAYMENT OF GRATUITY (AMENDMENT) BILL, 2017

IN THE PARLIAMENT 

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for introduction of the Payment of Gratuity (Amendment) Bill, 2017 in the Parliament.

The Amendment will increase the maximum limit of gratuity of employees, in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules, at par with Central Government employees.

Background:

The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main purpose for enacting this Act is to provide social security to workmen after retirement, whether retirement is a result of the rules 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 wage earning population in industries, factories and establishments.

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 Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling now is Rs. 20 Lakhs effective from 1.1.2016.

Therefore, considering the inflation and wage increase even in case of employees engaged in private sector, the Government is of the view that the entitlement of gratuity should be revised for employees who are covered under the Payment of Gratuity Act, 1972. Accordingly, the Government initiated the process for amendment to Payment of Gratuity Act, 1972. (Courtesy: Government Press Statement)

 

Gratuity to Casual Labour in BSNL

03 Friday Feb 2017

Posted by in BSNLCCWF - Casual and Contract workers

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After much persuasion on the part of BSNLCCWF, BSNL Management Committee in June 2016 approved provision of Gratuity to the casual labour. However, it was not approved by the BSNL Board, since the same was opposed by the Member from DOT. In the meantime BSNLCCWF demanded the management to at least implement the same to those retired or expired. This is being considered.

Today, 3rd February 2017, Com. V.A.N.Namboodiri, President BSNLCCWF, met Additional Secretary, DOT Shri Shivasailam, who is the Member from DOT, and discussed the matter. Com.Namboodiri pointed out that this is a statutory provision and has to be implemented. Addl. Secretary stated that he has cleared the file and it is up to the BSNL to implement the same. This is a good information. We hope that the next meeting of the BSNL Board will take the necessary decision.

Gratuity for casual / contract workers

24 Saturday Sep 2016

Posted by in BSNLCCWF - Casual and Contract workers

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BSNLCCWF has demanded that the casual and contract workers should be granted Gratuity as per the labour laws of the land. The Management Committee of BSNL has already approved the same, but it is pending with the BSNL Board, which sought further clarifications from the management on the financial implications. For the casual labour, all the information are available with the management since, the EPF with retrospective effect from 01-10-2000 was ordered for these workers.
We demand that the next meeting of the BSNL Board, which is expected to meet on 28th September 2016 take a definite decision in the matter so that the concerned workers are granted with gratuity. Delay in decision will deny the same to those who are already retiring after thirty-forty years of dedicated service.

Gratuity to CG Employees recruited after 2004 ( NPS Employees) ordered – great victory!

30 Tuesday Aug 2016

Posted by in CG Employees, General

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A MAJOR VICTORY OF THE STRUGGLE OF CENTRAL GOVT EMPLOYEES:

             Confederation of central Govt Employees & Workers have been continuously fighting against pension reforms implemented by Govt in tune with the neo-liberal policies and demanding SCRAPPING OF THE NEW PENSION SYSTEM (NPS). Further we have been demanding that those employees who are covered by NPS should be eligible for payment of Death cum Retirement Gratuity (DCRG) and Family Pension and also Govt guaranteed Minimum Pension and Compensation for price rise (Dearness Relief). Now the Govt has conceded one of our demand. Govt of India has issued orders to extend the benefit of Gratuity to all NPS Employees. Further the Cabinet has decided to constitute a committee for streamlining the implementation of NPS. We shall present the remaining issues before that Committee also. Scrapping of NPS is one of the main demand of 2016 September 2nd General Strike also. No struggle will go in vain. Let us make the strike a grand success. (Courtesy:Confederation News)

 

Gratuity for Casual Labour in BSNL

09 Thursday Jun 2016

Posted by in BSNL, BSNLCCWF - Casual and Contract workers

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After continued demand of the BSNLCCWF and BSNLEU, the BSNL Management agreed for implementing Gratuity to the casual labour and the Management Committee also approved. But when the issue was placed before the BSNL Board for decision, it has returned the same to the management asking for full details of number of employees, financial implications etc. Corporate office has asked the circle heads to immediately furnish the details for again submitting to the BSNL Board.

Circle secretaries of BSNLEU and BSNLCCWF are requested to ensure that the details are got furnished to the corporate office by the circles at the earliest so that decision is taken for grant of gratuity to casual labour.

EPF and Gratuity for contract workers

28 Monday Sep 2015

Posted by in BSNLCCWF - Casual and Contract workers

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Now that the EPF w.e.f. 01-10-2000 has been implemented and Gratuity is being finalised in the next BSNL Board Meeting, BSNLCCWF has taken up the issue of EPF and gratuity for contract workers to be implemented and from the same date. Com.V.A.N.Namboodiri, President, BSNLCCWF discussed the matter with the BSNL Management.

Gratuity to Casual workers in BSNL

28 Monday Sep 2015

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The Remuneration Committee of BSNL has approved the Gratuity Scheme for the casual workers engaged in BSNL. BSNLCCWF has taken the issue with the Parliamentary Standing Committee, after which the BSNL Management started the process. The BSNL Management Committee after approving the scheme has sent it to the Remuneration Committee which has adopted the same. Now the next meeting of the BSNL Board is expected to approve the same after which orders could be issued.

According to the scheme the benefit will be available w.e.f. 01-10-2000. the date on which BSNL was formed. This is a great achievement for the casual labours.

Gratuity to Casual labour

17 Thursday Sep 2015

Posted by in BSNLCCWF - Casual and Contract workers, General

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After continuous effort on the part of BSNLCCWF, the BSNL Management Committee has approved grant of Gratuity to the casual labour engaged in BSNL. Before issue of orders, BSNL Board has to approve the same. Com.VAN Namboodiri, President BSNLCCWF, met GM(Legal), GM(Estt) and also Director (HR) and discussed the issue. It was assured that the next Board meeting will consider the above. Before that, the Remuneration Committee formed from members of the Board will discuss and approve the same.

We hope that the assurances will be honoured.

Gratuity for casual labour – Circles to inform details of casual labour

19 Wednesday Aug 2015

Posted by in BSNLCCWF - Casual and Contract workers, BSNLEU

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BSNLCCWF and BSNLEU have been putting pressure on the management for implementation of gratuity for casual labour. It is now approved by the BSNL Management Committee. But before placing the same to the BSNL Board, the financial implications are to be found out and for this purpose all the CGMs have been asked to inform the necessary details. Since some of the circles are yet to submit the details, the Corporate Office has reminded on 19-08-2015 the circles to furnish the information. The order is placed in the BSNLCCWF website.

Circle Secretaries of BSNLEU and BSNLCCWF are requested to check with the concerned CGMs whether the details have been furnished to the C.O. or not. In case, it is not so far submitted, ensure that it is done without any further delay. THIS IS TO BE TREATED AS MOST URGENT.