New Delhi: The government on Monday introduced a bill in the
Lok Sabha that will allow it to notify the period of maternity leave and
gratuity that can be availed by employees under a central law.
The
Payment of Gratuity (Amendment) Bill, 2017 was introduced by labour
minister Santosh Kumar Gangwar in the House, amid continued sloganeering
by opposition members and counter-slogans by those of the Bharatiya
Janata Party (BJP).
The Payment of Gratuity Act, 1972, was enacted
to provide for gratuity payment to employees engaged in factories,
mines, oilfields, plantations, ports, railway companies, shops or other
establishments. It is applicable to employees who have completed at
least five years of continuous service in an establishment that has ten
or more persons.
According to the Statement of Objects and
Reasons of the bill, the amendment would allow the central government to
notify the maternity leave period for “female employees as deemed to be
in continuous service in place of existing twelve weeks”.
The
proposal comes against the backdrop of the Maternity Benefit (Amendment)
Act, 2017 enhancing the maximum maternity leave period to 26 weeks. “It
is therefore proposed to empower the central government to enhance the
period of existing twelve weeks to such period as may be notified by
it,” the Statement said.
With respect to gratuity, the
amount is calculated on the basis of a formula which is 15 days of wages
for each year of completed services, subject to the ceiling of Rs10
lakh. This limit was fixed in 2010. After implementation of the 7th
Central Pay Commission, the ceiling of gratuity amount for central
government employees has been increased from Rs10 lakh to Rs20 lakh.
Generally,
the ceiling under the Act follows that of the Central Pay Commission
recommendations. “Therefore, considering the inflation and wage increase
even in case of employees engaged in private and public sector, the
entitlement of gratuity is also required to be revised for employees who
are covered under the Act.
“It has also been proposed to empower
the central government to notify the ceiling proposed, instead of
amending the said Act, so that the limit can be revised from time to
time keeping in view the increase in wage and inflation, and future Pay
Commissions,” the Statement said.
Source : http://www.livemint.com
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