Bill to Increase Maternity Leave & Gratuity Mooted in Lok Sabha

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Business Mantra News

  • The Government introduced a Bill in the Lok Sabha to increase maternity leave and raise gratuity limit for employees.
  • It is expected that the Gratuity limit will be raised up to Rs.20 Lacs to make all sectors at Par in line with that in the Government Sector.
  • The Payment of Gratuity (Amendment) Bill, 2017 was introduced by Labour Minister Mr. Santosh Kumar Gangwar in the Lok Sabha.
  • The Payment of Gratuity Act provide for Gratuity Payments to employees engaged in factories, mines, Oilfields, ports, shops or other establishments.
  • Gratuity is applicable to employees who have completed at least five years of continuous service in an entity that has 10 or more persons/.
  • The Bill is proposed to allow the Central Government to notify the maternity leave period for “female employees as deemed to be in continuous service in place of existing 12 weeks.”
  • The proposal comes to increase the maternity leave period up to 26 weeks from 12 weeks.
  • The Gratuity limit is also proposed to be revised for both public and private sector employees after keeping in mind the inflation and wage increase.

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