- The Payment of Gratuity (Amendment) Bill, 2017 was introduced in Lok Sabha by the Minister for Labour and Employment, Mr. Santosh Kumar Gangwar on December 18, 2017. The Bill seeks to amend the Payment of Gratuity Act, 1972.
- The Payment of Gratuity Act, 1972 allows for the payment of gratuity to employees in any establishment, factory, mine, oilfield, plantation, port, railways, company, or shop employing 10 or more workers. Employees are paid gratuity if they have provided at least five years of continuous service at the time of termination.
- Under the Act, the maximum period of maternity leave available to female employees is 12 weeks. The Bill amends the provision to specify that the central government may notify the maximum time period for maternity leave. Note that the Maternity Benefit (Amendment) Act, 2017 has enhanced the maximum maternity leave from 12 weeks to 26 weeks.
- Under the Act, the maximum amount of gratuity payable to an employee cannot exceed Rs 10 lakh. This ceiling may be notified by the central government.
*as carried by PRS India.