Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
The Economic Times

Parliament passes Gratuity Bill

parliament-bccl-1
The new Act will also increase the maternity leave from 12 weeks-as mentioned in the 1972 Act- to 26 weeks as per the amendment done in the Maternity Benefit (Amendment) Act, 2017.
NEW DELHI: Opposition parties took a break from their protest in the Well of the Rajya Sabha on Thursday and passed the Payment of Gratuity (Amendment) Bill that will entitle a woman to 26 weeks of maternity leave from the present 12 weeks and also double the ceiling of gratuity from Rs 10 to Rs 20 lakh.

Minister of State (Independent Charge), Labour and Employment Santosh Gangwar moved the Bill for passage in the Rajya Sabha soon after the House met for the day. Vice President M Venkaiah Naidu asked the protesting members to cooperate and pass the important legislation which has already been cleared by the Lok Sabha.

Gangwar requested the House to pass the Payment of Gratuity (Amendment) Bill, 2018 without a discussion and it was cleared by a voice vote. Since the Lok Sabha has already passed the Bill, it will now go to the President for his assent. It will replace the Payment of Gratuity Act, 1972. As per the recommendation of the 7th Pay Commission, the ceiling for gratuity has been increased from Rs 10 lakh- fixed in 2010- to Rs 20 lakh.

The new Act will also increase the maternity leave from 12 weeks-as mentioned in the 1972 Act- to 26 weeks as per the amendment done in the Maternity Benefit (Amendment) Act, 2017. Lady employees will be deemed to be in continuous service for this period. As per the law, gratuity will be paid to employees engaged in both public and private enterprises, including factories, mines, oilfields, >plantations, and ports.
Stay on top of business news with The Economic Times App. Download it Now!