The bill was passed amid the din in the Lok Sabha today as uproar over a host of issues went for the second week in a row.
Earlier in the day, Parliamentary Affairs Minister Ananth Kumar said the Payment of Gratuity (Amendment) Bill was an important piece of legislation and sought the opposition's cooperation.
The bill notifies the period of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity ceiling from time to time without amending the law.
Moving the bill for passage, Labour Minister Santosh Kumar Gangwar said it is a very important legislation for employees, especially women.
Now, the bill will go to the Upper House for consideration and passage.
At present, formal sector workers with five or more years of service are eligible for Rs 10 lakh tax-free gratuity after leaving job or at time of superannuation.
A senior government official said that the government wants to provide tax-free gratuity of Rs 20 lakh to organised sector workers at par with the central government.
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.
The law is applicable to employees, who have completed at least five years of continuous service in an establishment that has 10 or more persons.
The amendment will also 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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.