LS passes bill to hike gratuity ceiling to Rs 10L
A bill to raise the ceiling of gratuity for employees to Rs 10 lakh from Rs 3.5 lakh was passed by the Lok Sabha without discussion on Monday.
New Delhi: A bill to raise the ceiling of
gratuity for employees to Rs 10 lakh from Rs 3.5 lakh was
passed by the Lok Sabha without discussion on Monday.
The House, which witnessed an opposition furore over the
2G spectrum "scam" and reports about alleged involvement of a
central minister in an illegal arms deal, also adopted the
Employees` State Insurance (Amendment) Bill 2009 without
The Payment of Gratuity (Amendment) Bill 2010, introduced
by Minister of State for Labour Harish Rawat last month, was
passed by a voice vote as AIADMK and some CPI(M) members
trooped into the well raising slogans.
The bill seeks to amend the Gratuity Act to enhance the
amount of gratuity payable to an employee from Rs 3.5 lakh
to Rs 10 lakh.
The legislation was brought following demands from trade
unions and others to remove the ceiling or increase the
maximum payable amount, which was fixed in 1997.
The House also passed the Employees` State Insurance
(Amendment) Bill 2009 to provide for medicare to unorganised
sector workers, especially those below the poverty line.
The bill, proposes that the Employees` State Insurance
Corporation (ESIC) should participate in the Rashtriya
Swasthya Bima Yojana to cover BPL workers in the unorganised
The Statement of Objects and Reasons of the bill said it
also proposed to increase the age limit of dependents from 18
to 21 years and provide for claims for accidents occurring at
work or while going to work.
The legislation was brought to the House in 2008 to
replace an ordinance and was then sent to the concerned
parliamentary standing committee.