Monday 15 January 2018

Bill to increase maternity leave period & gratuity limit tabled in Lok Sabha

The government had introduced a bill in the Lok Sabha that will allow it to notify a higher period of maternity leave and raise gratuity limit for employees.

The gratuity limit for private sector is expected to be raised to Rs 20 lakh in line with that in the government sector.

Labour minister Santosh Kumar Gangwar introduced the Payment of Gratuity (Amendment) Bill, 2017 in the House.

The Payment of Gratuity Act 1972 was enacted to provide for gratuity payment to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments. It is applicable to employees who have completed at least five years of continuous service in an establishment that has 10 or more persons.




According to the Statement of Objects and Reasons of the bill, the amendment would allow the central government to notify the maternity leave period for "female employees as deemed to be in continuous service in place of existing twelve weeks".
Credit - Economic Times

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