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Parliament passes the payment of gratuity bill

Parliament today passed an imperative bill that will empower the government to fix the period of maternity leave with an executive order along with the amount of tax-free gratuity.

The Rajya Sabha which has failed to make any fruitful business in the last fortnight because of the protests by different parties today passed the bill for Payment of Gratuity (Amendment).

The bill was moved by Santosh Kumar Gangwar, Labour Minister and was passed by a voice vote and was given approval last week by the Lok Sabha.

After the 7th Pay Commission was implemented, the ceiling of the gratuity amount for the employees of the central government was doubled to Rs. 20 Lakhs.

It also permits the government to fix the period of maternity leave for the female employees as deemed to be in continuous service in place of existing 12 weeks.

The amendment to the payment of gratuity law comes in the backdrop of Maternity Benefit (Amendment) Act, 2017 enhancing the maximum maternity leave period to 26 weeks.

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