In a major relief to salaried class, government cleared a proposal to raise the ceiling for payment of gratuity from the existing limit of 3.5 lakh rupees to 10 lakh rupees. The government is likely to table a bill amending the gratuity law during the current session of Parliament. The move comes after several representations by employees' groups for a removal of gratuity ceiling. Often, central and state government staff with high incomes did not get the full amount accrued in gratuity. With the enhancement of the limit, they will get more benefits at the time of retirement.<br/><br/>
News On AIR | March 5, 2010 2:30 PM
‘Centre raises Gratuity ceiling for Private Sector Employees