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 )

• sk gandhi
  
  May 15, 2010 at 05:28:pm

  i retired from public sector Bharat electronics in march2010 ,after serving 37yrs.should i get revised gratuity and pension?
• B.K.SHARMA
  
  May 15, 2010 at 06:05:pm

  I retired from Public Sector Bank on 31.03.2009 and am interested to know the date of effect of recent amendment in the Gratuity Act. Please apprise & oblige . Regards
• Raghavan
  
  May 16, 2010 at 11:21:am

  PLEASE CLARIFY THE GRATUITY ACT QUERIES FOR BENEFIT OF HUMANITY
• sc kohli
  
  May 16, 2010 at 11:34:am

  i retired from Bharat electronics(a Nav Ratna.public sector)in Jan 2009 after serving 36 yrs.am i eligible for new Gratuity and pension?
• sk gandhi
  
  May 16, 2010 at 12:45:pm

  I retired from public sector Bharat electronics in march2009 ,after serving 37yrs.should i get revised gratuity and pension?
• S.R.MEHTA
  
  May 16, 2010 at 02:01:pm

  Let me know the date of gratuity act, 2010. I have retired from co-operative bank on 8th march, 2010. Whether I am eligible for this amendments. Please send me the reply on my email address. Thank you.
• D N GARG
  
  May 16, 2010 at 03:04:pm

  I was retired Bank service on 31-08-2008. What I am elligible enhanced gratuity after gratuity amendment act 2010 passed by goverment.
• P.VIJAYARAGHAVAN
  
  May 16, 2010 at 06:57:pm

  See the news below…incompleteregardin date of applicability etc…and date of amendment. can somebody enlighten the sufffering retired people…

  ————————————————-
  Gratutitty act payment bill 2010). 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 ammendment the 10 lacs on gratuity is Tax-free. I have given the details of the new Gratuity Act Ammendment 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 Graduity 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.
• Raju singh
  
  May 16, 2010 at 08:25:pm

  I after working in managerial designation, have been discharged from the services of a limited company after more than 5 years, but there is some disagreement on calculation of Gratuity. I do not come under the definition of workman. Kindly urgently advise what all legal actions I can take.
• S.K.CHOUDHARY
  
  May 17, 2010 at 07:57:am

  I have beeb retired from the Bank’s service on 31.05.2009 after serving 39 years.Shall I am eligible for the enhance gratuity amount? please advise the effective date of recent ammendments in the gratuity act. Regards
• B M Madhava
  
  May 17, 2010 at 09:52:am

  please inform from which date the new amendment increasing the maximum limit to Rs10 lakhs,applies. I was retired on 31/03/2010 whether I will get the above benifit.
• B M Madhava
  
  May 17, 2010 at 09:23:am

  please inform from which date the new amendment increasing the maximum limit to Rs10 lakhs,applies. I was retired on 31/03/2010 whether I will get the above benefit.
• satpahwa
  
  May 17, 2010 at 06:18:pm

  Do you reply these inquiries? if yes where? I have similar inquiry about gratuity?
  satpahwa
• abc
  
  May 17, 2010 at 07:00:pm

  If the Gratuity deducted from CTC. And the employee wish to leave the company before 5 year than the Gratuity should return to employee?

  Is it legal deduction of Gratuity from Cost To Company CTC.
• Subbarayan v
  
  May 17, 2010 at 07:42:pm

  I have retired from Gsecl on april 2009. Am I eligible for this new gratuity enhancement.
• shrikant dhondo satpute
  
  May 18, 2010 at 11:07:am

  Date;-18-05-2010

  Please inform whethtr govermment of india have issued notification for amendment of limit.if yes when? if not when it expected ? can we expect that amendment will be effective from january,2010 ?
• S.R.Krishnamoorthy.
  
  May 18, 2010 at 12:06:pm

  I retired from M/S BHEL,on 24/12/2007.after servicing 29 years and M/S NAL (central govt.service), servicing 7 years.Put together (central +PSU) 36 years.For gratuity calculation,please inform only M/S Bhel alone is considered or both.
• KA Salian
  
  May 18, 2010 at 05:46:pm

  It is more than fifteen days since the amendment to gratuity act passed by both the houses of parliament increasing ceiling amount from 3.5 to 10.0 lacs. However noboday knows the effective date of the notification. Can some-one clarify whether the notification has been issued. If yes, how one can see the same. If not yet issued, what is the expected date?
• P.VIJAYARAGHAVAN
  
  May 18, 2010 at 05:43:pm

  Any educated person who retired knowing latest gratuity amendment act please enlighten all those who are in darkness pleae…Please throw some bright light on isses concerning all retired persons…and others also..Please throw light immediately…
• f.b.shekar
  
  May 18, 2010 at 11:38:pm

  I resigned my job after 28 years of service. I was relieved from 12th dec 2009. So far my employers has not cleared my retirement benefits . Am I eligible for the enhanced gratuity limit of 10 lakhs. pls clearity.