effective date for gratuity Rs.20 lakhs should be 1 .1 .2016

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The Payment of Gratuity (Amendment) Bill, 2018 has been passed by parliament. The bill ensures harmony amongst employees in the private sector and Public Sector Undertakings/Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. These employees will be entitled to receive higher amount of gratuity at par with their counterparts in Government sector. The bill was passed by the Rajya Sabha on 22 March 2018 and the Lok Sabha on 15th March, 2018.

By this amendment power to notify date from time to time is given to government. And accordingly labour ministry has declared the date as 29.03.2018(Gazzette of india 29.03.2018).

The bill was introduced to create HARMONY in between government employees and private /PSU employees. Effective date for government employees is 1. 1. 2016.Means government employee retired on or after 1. 1. 2016 have got gratuity of Rs.20 lakhs. But such date notified for non-government employees is 29.03.2018.

Where is the HARMONY. The date notified by labour miinistry should have been 1. 1. 2016.

This is injustice to non government employees retired during 1.1.2016 to 29.03.2018 who are losing Rs.10 lakhs each,which could have helped them to live their retirement life peacefully.

Hence ministry of labour should notify 1.1.2016 as the effective date for getting gratuity of Rs.20 lakhs by non government (PSU/Pvt ) employees.