Cash-strapped national carrier Air India has doubled the gratuity ceiling amount of its employees from Rs.10 lakhs to Rs. 20 lakhs.
An Air India letter dated on June 26, said,
"It has been decided to implement the enhancement of gratuity payable to employees under Payment of Gratuity Amendment Act 2018, revising the existing ceiling limit from Rupees 10 lakhs to 20 lakhs effective 29th March 2018 for employees ceasing to be in the service of the company as approved by the board of Air India Limited in its 86th meeting held on 21st May 2018."
Around 6500 employees of the airline stand to benefit from this new announcement.
Earlier, if someone had the gratuity beyond Rs.10 lakhs, he or she would only get Rs.10 lakh. The new rules of the Government of India now ensure an employee of a maximum of Rs. 20 lakhs if he or she has more than Rs. 10 lakhs.
Disclaimer: No Business Standard Journalist was involved in creation of this content
