A Bill to increase the gratuity ceiling for the private sector employees, from the present Rs. 3.5 lakh to Rs.10 lakh, was introduced in the Lok Sabha on Thursday.

The Union Cabinet gave its nod last month after the trade unions strongly pitched for such an increase as the Sixth Pay Commission had hiked the gratuity ceiling for the Central government employees to Rs.10 lakh.

Minister of State for Labour Harish Rawat introduced the Bill to amend the Payment of Gratuity Act, 1972.

1997 ceiling

It was in 1997 that the ceiling of Rs.3.5 lakh was fixed.

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