Parliament on Wednesday approved the increase in the gratuity limit for employees from Rs. 3.5 lakh to Rs.10 lakh, with the Rajya Sabha approving the legislation by voice vote.

The Lok Sabha passed the Payment of Gratuity (Amendment) Bill, 2010, on Monday.

Backing from all members

While all members supported the Bill, G.Sanjeeva Reddy of the Congress and R.C. Singh of the CPI wanted it to take effect from 2006 when it was first proposed.

However, Labour Minister Mallikarjun Kharge said that while the government wanted to give a lot, the employer should have the capacity to pay. Hence, the government did not accept the demand to improve the formula for calculating gratuity.

More In: National | News