Effective date of enhancement of Gratuity Limits-Unfair for PSU employees

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Gratuity is a one time payment received by an employee at the time of his retirement, after putting in a service of 35-40 Years. This limit for Government employee has been now been revised to 20 Lakhs w.e.f. 01.01.2016.However it is understood that for PSU employees this enhanced limit of 20 Lakhs is expected to be applicable w.e.f. 01.01.2017. During the past Pay Revisions, the Central Government Employees and PSU employees have always been treated, at par, as far as Gratuity is concerned and Gratuity was never linked with the date of Pay Revision. As I have brought out earlier Gratuity is a one time benefit received by an employee (who ceases to make any regular earning on the date of retirement) after rendering a service of 35-40 Years, whereas pay revisions is a revision of monthly earnings, which is a regular monthly payment to the employees in service. Therefore treating Gratuity at par with Pay Revision is not fair and has never been done in the past i.e. Increase in Gratuity limit for PSU employees has always been effective from the same date as the Government Employees. Therefore any difference in date of implementation of enhanced Gratuity between government and PSU employees appears to be discriminatory. I therefore, on behalf of PSU employees, request your kind intervention and to approve the applicability of the Enhanced Gratuity limits from the same date i.e.01.01.2016 for all PSU employees in line with Government Employees.



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