Retrospective benefits on gratuity not on the cards, says NDA govt

The law was amended to bring parity between public and private sector employees (including PSUs) after the gratuity limit was raised for central government on similar lines

The National Democratic Alliance (NDA) government has decided against passing the benefits under the new gratuity law, which doubles the present maximum payout, with retrospective effect. 

This is owing to employers fears of a higher payout. The government received several requests from workers’ representatives belonging to public sector units (PSUs) and the private sector for doubling the limit for gratuity payout on par with central government employees. 

Parliament had passed the Payment of Gratuity (Amendment) Bill, 2018, in March this year, in a bid to raise the gratuity limit to Rs 2 million from the Rs 1 million earlier. 

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