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Gratuity Act likely to be amended soon: govt
January, 25th 2010

Close on heels of raising the gratuity limit for central government employees upto Rs 10 lakh in the Sixth Pay Commission, the government in a bid to facilitate greater flow of welfare benefits from employer to employee in the private sector would soon be amending the payment of gratuity Act 1972, said S Mallikarjun Kharge, minister for labour and employment, on the sidelines of Icai (Institute of Chartered Accountants of India) convocation-2009 held here.

The gratuity ceiling currently capped at Rs 3.5 lakh even if employee accumulates more money after completing 5 years of service with an organisation would be upwardly revised up to Rs 10 lakh even for the private sector employees, Mallikarjun Kharge said.

We are actively considering to amend the Act at the next convening session of Parliament and the Cabinet will be holding detailed consultations with the various stakeholders and the standing committee of Parliament before introducing amendment provisions, he said and added that labour ministry will be planning to build a consensus over the issue.

In his address, he called upon the chartered accountants (CAs) to play the role of sheet anchor in collection of revenue to the government, both in direct and indirect taxes. "It is very easy to toe the line of employer, but difficult to keep the trust and responsibility of investors.

You are under a binding obligation to the investors and general public who repose confidence in you-in your attestation, certification, expertise, your competence as a professional," the minister said.

 
 
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