Government introduces bill to increase gratuity limit, maternity leave period

The government on Monday introduced a bill in Lok Sabha to raise gratuity limit for employees and also to notify a higher period of maternity leave. 
 
As per the bill, the gratuity limit of the private sector employees will be raised to Rs 20 lakh in line with that in the government sector. Labour minister Santosh Kumar Gangwar introduced the Payment of Gratuity (Amendment) Bill, 2017 in the House. 
 
This Payment of Gratuity Act 1972 enacted to provide for gratuity payment to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments. It is also applicable to employees who have completed at least five years of continuous service in an establishment that has 10 or more persons, reported ET. 
 
The report says that, according to the Statement of Objects and Reasons of the bill, the amendment would allow the Central government to notify the maternity leave period for female employees as deemed to be in continuous service in place of existing twelve weeks to 26 weeks.
 
According to the report, with respect to gratuity, the amount is calculated on the basis of a formula which is 15 days of wages for each year of completed services, subject to the ceiling of Rs 10 lakh. This limit was fixed in 2010. 
 
The ceiling of gratuity amount for the Central government employees has been increased to Rs 20 lakh from Rs 10 lakh after the implementation of the 7th Pay Commission.