Lok Sabha bill passage favored Employee
In India, a gratuity is a form of the retirement benefit paid in order to help an employee monetarily after his/her retirement.
Payment of Gratuity Act:
The Payment of Gratuity Act was enacted to provide the gratuity payable to employees which were first passed on August 1972.
The Act also benefits all type of employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments.
After the passage of the Payment of Gratuity (Amendment) Bill in the Rajya Sabha, now the government would be able to enhance the ceiling of tax-free gratuity.
From Rs. 10 lakh the payment bill increased to Rs 20 lakh for the employee under the Payment of Gratuity Act.
Also, the bill notifies the period of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity ceiling from time to time without amending the law.