Regulatory Update: Brief on Payment of Gratuity (Amendment Act), 2018

The Government vide notification No. 1420(E) dated 29th March 2018 has enhanced the gratuity ceiling under the Payment of Gratuity Act, 1972 from Rs. 10 Lakh to Rs. 20 Lakh with effect from 29th March 2018. The government received representations requesting that the effective date is changed to 01st April 2016 instead of 29th March 2018 to bring them at par with the CG employees. However, the recommendations have been rejected on the ground that the retrospective enhancement of ceiling would be detrimental to the interest of the employers.

Source: https://labour.gov.in/sites/default/files/Gratuity_2.pdf

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