Cabinet on Tuesday approved introducing Payment of Gratuity Bill in the Parliament. Following the approval of the 7th Pay Commission, the Union Cabinet today approved introducing Payment of Gratuity (Amendment) Bill, 2017 in the Parliament.
The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval for the gratuity ceiling for Government servants to Rs 20 Lakh.
This will increase the maximum limit of gratuity of employees, in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules, at par with Central Government employees.
Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling now is Rs. 20 Lakhs effective from 1.1.2016.