Skip to main content

Clarifications on Gratuity Act Amendment 2018

Please note the following points regarding the recent Amendment to the Gratuity Act

  1. Employee leaving an organization on or after 29th March 2018 shall be eligible for increased benefit of Gratuity of Rupees 20 lakhs. Any employee who was eligible for gratuity before this date will be entitled to the old benefit of Rupees 10 lakhs.
  2. The Maternity Act was amended about a year back on 28th March 2017 by which women were entitled to avail 12 weeks of paid maternity leave. However corresponding amendment was not made to the Gratuity Act.  Due to this, women who were eligible for gratuity between these dates will be eligible for 6 weeks maternity leave in Gratuity and not 12 weeks. Leave availed in excess of 6 weeks shall not be considered as part of service.