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 )

• Arun Sharma
  
  Apr 09, 2010 at 12:45:pm

  Dear Sir,
  I retired on .06.11.2007.Please tell me effective date of “Gratuity Act Ammendment India 2010 ”
  Thank You.

  Arun
• santosh
  
  Apr 09, 2010 at 01:37:pm

  Sir,

  Can company deduct the gratuity from salary

  Please advise
• Mr.Kamlesh P. Gopani
  
  Apr 10, 2010 at 05:23:pm

  PLEASE LET ME KNOW ON MY EMAIL ID IE
  kpgopani [at] yahoo.com
  from which date Gratuity limit has been incresed ii from 3.5 lacs to 10.0 lacs.
  I have resigned wef 1-5-2010.My last working day is 30-4-2010.
  Plz reply immediately.
  Kamlesh Gopani
• MANU R NAIR
  
  Apr 11, 2010 at 02:55:pm

  Dear Sir,

  I worked with sri durga automobiles for the duration 03.09.2005 to 23.03.2010 (i.e:- 4 years 6 months). Am i eligible for gratuty as per amended gratuty act? Please adevice me.

  Thanks & Regards
  MANU R NAIR
• Pawan
  
  Apr 11, 2010 at 07:43:pm

  Hi,

  My company use to deduct gratuity from my salary. I worked for 1 and half year there. I have resigned now but they have not paid gratuity to me. Please advice if I am eligible for gratuity or not.

  Thanks,

  Pawan
• rajeswari
  
  Apr 12, 2010 at 11:47:am

  my dad retired from his service on 31.1.2010.I want to know weather the new gratuity act 2010 will apply to him.He worked as a secretary in a primary agricultural co-operative socity.
• Chitra
  
  Apr 12, 2010 at 05:35:pm

  Hi everybody, just want to know if LOSS OF PAY will be reduced from number of working days
• Chitra
  
  Apr 12, 2010 at 05:40:pm

  Hi everybody, i just want to know if Loss of Pay leave will be reduced from the number of years of service
• maya
  
  Apr 13, 2010 at 10:39:am

  my duration is from 01.07.2005 to 12.04.2010. Am i eligible for gratuty as per amended gratuty act? Please advice me.
• janardhan
  
  Apr 13, 2010 at 02:39:pm

  I have worked for a pvt ltd company for 17 years as a computer operator. I left the company on 2-12-2009. i was getting basic salary of Rs.7,020. But my employee refused to give me graturity, saying that gratuity act does not apply to pvt ltd companies. am i eligible to get gratuty under new gratuity act. kinldy advice me what step i have to take to get my gratuity amount.

  Regards,

  janardhan M. K.
• G S Heramba
  
  Apr 17, 2010 at 10:58:pm

  I have completed 33 years of service in Public Sector Bank and due to retire
  on31/07/2010 Can anybody from the group inform me if I opt for Valuntaraly retire
  at this stage can I get the benefit of New Gratutity benefit of enhanced limit
  A line in reply is highly appriciated
• Dr. K K Agarwal
  
  Apr 20, 2010 at 04:38:pm

  Sir,

  I am due to retire soon. I am working for private sector. My gratuity amount exceeds 10 lakhs. Can I get 10 lakhs tax free. Whether all clearances are in place.
• suryanarayanan j
  
  Apr 20, 2010 at 05:13:pm

  i am retired-superannuation on 31-12-09.Am I eligible for the revised /enhanced
  graduity.From which date the new graduity is payable.
• sanjay kumar
  
  Apr 21, 2010 at 07:43:am

  I retired on superannuation from govt. service on 31.12.2007 and worked more than 39 years at a straight without any break. Please inform me whther this amendment will also be applicable for me from the date of retirement.
• Ravindran M N ( Retired Employee)
  
  Apr 24, 2010 at 10:25:am

  Sir,

  Can any one advise as to, what is date from which the amendment regarding increase from 3.5 Lacs to 10 Lacs in the gratuty amount will be effective. Can you give me copy of the ammendment and a model calculation statement.
• raju
  
  Apr 25, 2010 at 11:50:am

  one of my friend got job in 2004 as a trainee . His PF deducted at that time also.After that he got a promotion as a employee on the same company in 2005.Then he got a another promotion as ajunior manager in same company in 2010.in this case will he get the gratuity if he resigned the job.as per norms he completed his 5 years service from training but he did not complete 5 years from the promotion of employee.please answer this question
• dilip kumar som
  
  Apr 28, 2010 at 12:10:am

  retried frm bank service on 31/12/2008.whether eligile for enhancement of gratuity frm 3.50lacs to10lacs
• SURAJ PRASAD
  
  Apr 28, 2010 at 12:48:pm

  Kindly let me know the date from which the enhancement of gratuity amount from 3.5 L to 10 L is applicable for private sector employees.

  Thanks.

  Suraj Prasad. e.mail. surajjsr11@gmail.com
• AJAY SINGH CHOUHAN
  
  Apr 28, 2010 at 03:44:pm

  Dear Sir,

  I worked with Onward e Service Ltd for the duration 01.01.2001 to 15.001.2010 (i.e:-10 years 15 days). Am i eligible for gratuty as per amended gratuty act? Please adevice me.

  Bisic 4030
  Tranport Allowance 800
  Medical Reimbursement 1250
  Performance Allowance 1280
  HRA 1612
  LTA Monthly 336

  Thanks & Regards

  Ajay Singh Chouhan
• gdgupta
  
  Apr 28, 2010 at 04:33:pm

  Dear Sir
  Jaihind
  Please send me a copy of Gazet notification for lattest amendment in Gratuity act-2010.
  Please also advise upto whal limits it is Non- taxable for company employees
  gdgupta