Gratuity payment ceiling to double to Rs20 lakh
The central government agreed to allow millions of organised sector employees to withdraw up to Rs20 lakh from their gratuity corpus, double the amount permitted now.
Currently, even if a worker accumulates more than Rs10 lakh as gratuity contribution, he or she is allowed to withdraw only Rs10 lakh.
The agreement came following a meeting between the labour ministry and representatives from states, employees and employers.
"All the stakeholders-states, Centre, unions and the industry representatives were on the same page to enhance the gratuity ceiling from Rs10 lakh to Rs20 lakh," a labour ministry spokesperson said after the meeting.
The labour ministry will now bring a formal amendment to the Payment of Gratuity Act to implement the change.
Currently, an employee with at least five years of continuous service is eligible to get gratuity, which forms part of the overall salary package of an employee, but not paid monthly.