Gratuity Act Ammendment India 2010 (Calculation and Payment)

This is good news for all employees specially government employees. The Gratuity limit has been raised from 3.5 lacs to 10 lacs. This will give advantage to both private and public sector employees. According to this new amendment the 10 lacs on gratuity is Tax-free. I have given the details of the new Gratuity Act Amendment India 2010 and Gratuity calculation below:

On Thursday, in the lead of PM Manmohan Singh, this decision was taken at a cabinet meeting. This proposal of Labor and Employment Ministry has been given approval. Although many state governments has provided this type of advantage earlier. It is better decision regarding gratuity act to raise the Gratuity limit.

CCEA has taken decision to open the 137 General Nursing and midwife school to remove the scarcity of nurses and midwives. These schools will be made in Bihar, Chhattisgarh, Madhya Pradesh, UP, Uttarakhand, Rajasthan, Orissa, Himachal Pradesh and others. The amount of 1370 crores will be spent on this planning.

For the Gratuity calculation the gratuity calculation formula is

1. basic/26 x 15 days x number of years of service

OR

2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS

Gratuity is to be paid to any employee only he provides service for a minimum time of five years at a stretch with his employer in company. The Gratuity calculation is done as per the last average remuneration drawn and time in years served by an employee.

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Comments/Queries

( 482 Comments so far )

• vijay
  
  Mar 06, 2010 at 02:48:pm

  Can any one advise as to, what is likely date from which the amendment regarding increase in the gratuty amount will be effective.
• Saurabh
  
  Mar 08, 2010 at 12:28:pm

  From which date the new limit is effective?
• Nitin Yadav
  
  Mar 08, 2010 at 05:43:pm

  from which date, it is effective. my ffather was mtnl Mumbai employee, was expired on 17 june 2007. Mother Receive Family Pansion
• m.shekhar reddy
  
  Mar 09, 2010 at 11:57:am

  gratiutiy limit raised 3.5lakhs to 10lakhs from which date implemented.

  please give details
• VENKATESHWARAN HARIHARAN
  
  Mar 09, 2010 at 04:26:pm

  Whether person who is relieved on 1st march 2010 is eligible for this relief as per the ammendment in the act.
• H.N.Sathya Murthy
  
  Mar 09, 2010 at 08:46:pm

  Dear Sir

  I am retired teacher from private un-aided engineering college from Bangalore , after serving 36 years i am getting pension of Rs 1394/- per month , now i was told that i am eligible for gratuity as per recent act is it true ?

  please somebody send me details

  with regards
• AVSRINIVASAN
  
  Mar 10, 2010 at 09:49:pm

  Pl advise from which date is the new amendment applicable?Pl mail the detail
  Thanks
• J.T.KULKARNI
  
  Mar 11, 2010 at 09:15:pm

  PL advise the date from which new amendment will b applicable? Is it actually passed or
  in the process still ?
• Rambabu
  
  Mar 13, 2010 at 11:07:pm

  I was Worked in Godrej Agrovet Ltd From 1July 2004 to 6 Nov 2009.plz tell me What i eligible for gratuity.

  Regards
  Rambabu
• Madhusudhan Rao
  
  Mar 15, 2010 at 10:40:am

  Hi,

  My Father is working in police Department. He served for 33 years.
  Please provide on which Amendement he will get the gratuity and also the caluculation of new Gratunity.. Thanks in Advance
• R.Venkatramaiah
  
  Mar 15, 2010 at 06:36:pm

  Sir,

  I have retired from a Nationalized Bank on 01.07.2009. Am I eligible to claim Gratuity as per amended amount upto Rs.10.00. lacks . My Gratuity has been settled by taking the ceiling of Rs.3.50 lacks. Kindly advise.
• Rajesh Kumar gupta
  
  Mar 19, 2010 at 08:05:pm

  Dear Sir,
  Please tell the authentic source to confirm that Payment of Gratuity Act 1972 stands amended for increasing limit of gratuity from 3.5 to 10 Lacs
• D.UDAYA CHANDER
  
  Mar 19, 2010 at 08:34:pm

  I retired from services on 16.10.2009 .Please let me know whether new gratuity act is applicable to me?
• G.V.Chowdary
  
  Mar 27, 2010 at 01:25:pm

  Dear Sir,

  I worked with Sembawang Infrastructure (India) Pvt Ltd for the duration 01.06.2005 to 31.03.2010 (i.e:- 4 years 10 months). Am i eligible for gratuty as per amended gratuty act? Please adevice me.

  Thanks & Regards

  G.V.Chowdary
• SUNIL SURVE
  
  Apr 01, 2010 at 02:27:pm

  I am getting Basic Salary + HRA from my employer. I have completed 12 years of service. Shall HRA is accounted at the time of calculating gratuity as per Gratuity Act? Please advice.
• satish kumar
  
  Apr 01, 2010 at 05:10:pm

  i retired from the psu namely food corporation of india on 30.06.2009. i was governed by the cda pattern but the gratuity was paid only rs.3.5 lakhs instead of rs.10 lakhs enhanced by the sixth pay commission though the salary enhanced as per sixth pay commission approval. now the gatuity act has been amended. will i now receive the gratuity arrears as per revisd enhanced ceiling of rs. 10 lakhs.
• E.V.Sampathkumar
  
  Apr 03, 2010 at 12:55:pm

  I was worked private company for the past 18 years, the employer to be provided the graduity calculated only the last drawn of basic pay and not mention the DA/HRA/CA etc., but the company shown only other allowance. How can spleted the DA from other allowance, If any act or calculation will be there? Please send to suggestion for above above matter and through my e-mail ID.
  And also need the bonus eligible for the current year
  Thanks lot,

  E.V.Sampath Kumar
• T.P.Choudhary
  
  Apr 04, 2010 at 08:06:am

  I have been retired from S.B.I.from 1st Oct 2006.As I understand the act has been given restospective effect from 4th April 2007 whereas the same has been made applicable to Central Govt employees from 1st Jan 2006 i.e. the date of implementation of 6th pay commission.Is it not illegal and discriminatoy?If so, what is the recourse open for redressal? Pl. advise.

  T.P.Choudhary
  444,Vikashnagar ,Jabalpur ( M.P. )
• Subramanian
  
  Apr 04, 2010 at 09:14:am

  Pl let me know the exact date of amendment of gratuity from 3.5 lac to 10 lac.
• mns.kiran
  
  Apr 07, 2010 at 12:29:pm

  i am 48 years old..i am working in LIC OF INDIA from 1996 on wards …. now my Basic salary is 8000/- p.m. and DA is 5500/- last payment for me is 13700/- ……….. now How much Gratuity at present i am receving…….. and total service Gratuity for my end of my service to (year 2022) …