Former Union Minister Bandaru Dattatraya hailed the decision of the Union cabinet for introduction of the Payment of Gratuity (Amendment) Bill, 2017 in the Parliament.
He recalled that while he was the Minister of State(IC), Labour and Employment, Govt of India, he sent the draft note on the proposed amendment of the Gratuity Act for the approval of the Cabinet.
Dattatraya stated that the proposed amendment was taken up to help the employees in the Private Sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules, at par with Central Government employees.
He also stated that the Government under the leadership of Narendra Modi is committed for providing the ‘Job Security Wage Security, Social Security” to all the employees and this amendment is a great step in that direction of providing Social Security to the retired Staff. The proposed amendment is applicable to all those who are retired on superannuation, or physical disablement or impairment of vital part of the body. He further stated that the Payment of Gratuity Act, 1972 is an important social security legislation to wage earning population in industries, factories and establishments.
Dattatreya further elaborated the matter that the present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar. Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling now is Rs. 20 Lakhs effective from 1.1.2016.
The Secunderabad MP stated that with the amendment, the retired staff can cope up with the demands and needs of the day like inflation, wage revision and thanked the Prime Minister and the Union Cabinet under his dynamic leadership for taking up decision for the far reaching amendment to Payment of Gratuity Act.