The Centre of Indian Trade Unions (CITU) has written to Union Labour Minister Mansukh Mandaviya demanding an amendment to the Payment of Gratuity Act to enhance the maximum gratuity ceiling limit from the present ₹20 lakh to ₹25 lakh. The CITU has reasoned that the private sector workers should also get the Union government’s recent amendments to the Central Civil Services (Pension) rules increasing the gratuity ceiling of Union government employees to ₹25 lakh.
In his letter to Mr. Mandaviya, CITU general secretary Tapan Sen said the Payment of Gratuity Act of 1972 was an important social security legislation to wage earning population in industries, factories, mines, oilfields, ports, railways, plantations and shops and establishments. He reminded the Minister that the Centre had amended the Act in 2018 after the ceiling was raised to ₹20 lakh in 2018 to Central government employees as part of implementing the Seventh Pay Commission recommendations.
Mr. Sen said that in March 2024, the Department of Pension and Pensioners’ Welfare has issued instructions enhancing the maximum gratuity limit to ₹25 lakh under the CCS (Pension) Rules. “This enhancement took effect from January 1, 2024. As our Labour Ministry did in 2018, we urge upon you to kindly expedite the logical follow up process of amending the Payment of Gratuity Act to enhance the maximum gratuity ceiling limit from the present amount of ₹20 Lakh to ₹25 lakh…,” Mr. Sen said, adding it will ensure harmony in gratuity benefit among employees who are covered under the Payment of Gratuity Act, 1972 in the private sector and in public sector undertakings/ autonomous organisations with government employees. “If we amend the Payment of Gratuity Act, 1972 so, all these employees will become entitled to receive higher amount of gratuity at par with their counterparts in the government sector,” he said.
Published – March 13, 2025 08:13 pm IST
