Enhancement of Gratuity Limit

The Government has issued Notification bearing S.O. No. 1420(E) dated 29 March 2018 wherein gratuity limit has been increased from Rs.10 lakhs to Rs.20 lakhs under the Payment of Gratuity Act, 1972.

The Government has also issued another Notification on the same day wherein it has also increased the maximum period of maternity leave in case of female employees to be counted as continuous service from 12 weeks to 26 weeks under the Payment of Gratuity Act, 1972.

Representations from various stakeholders have been received in the Ministry. The Ministry had also organised tripartite consultations on 23.02.2017 with all stakeholders including representatives of employers and employees, who supported the proposal. The provision contained in the amended Payment of Gratuity Act, 1972 have been implemented w.e.f. from 29.03.2018.

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