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Payment of Gratuity Amendment Act 2012
Type: HR, Report if not a HR topic
Posted 21-01-2013Reply
STATEMENT OF OBJECTS AND REASONS
The sub-section (2) of Section 4 of the Payment of Gratuity Act, 1972 provides
for payment of gratuity to the employees at the rate of fifteen days’ wages based on
the rate of wages last drawn for every completed year of service. In today’s world of
high prices and inflation, the gratuity of fifteen days wages for every completed year
is too meager. At such a small rate, a person cannot get enough amount for post
retirement settlement. It should therefore be atleast at the rate of thirty days’ salary
for every completed year of service.
Source: www.hkc.webs.com