CBOA CIRCULAR NO. 4 DATED 10.03.2010

CBOA, AP issued its circular No. 4 dated 10.03.2010 on Gratuity Ceiling. We are reproducing the same here 

Circular No. GS: 2010: 004                    Date: 10.03.2010

TO ALL OFFICERS                            PLEASE CIRCULATE

Dear Friends,

We reproduce hereunder the Circular No. 28 dated 08.03.2010 received from All India Bank Officers’ Confederation, to whom we are affiliated, for your information.

With best regards

Yours sincerely

Sd/-

(C.A. MALLIKARJUNA RAO)

GENERAL SECRETARY

.................................................................…………….…………………………

GRATUITY CEILING

Consequent upon enhancement of gratuity ceiling from Rs 3.5/- lacs to Rs. 10/- lacs (maximum) with effect from 01.01.2006 to Central Govt. employees as a part of 6^th Pay Commission recommendations, by an administrative order, we took up the matter with the then Hon’ble Union Minister of State for Finance Shri. Pavan Kumar Bansal and the then Hon’ble Union Labour Minister Shri. Oscar Fernandes for enhancement of the Ceiling of Gratuity to Rs.10/- lacs through an amendment to Payment of Gratuity Act 1972 with effect from 01.01.2006. The undersigned along with Com. T.N.Goel, Jt. General Secretary, AIBOC met both the Ministers at Delhi and presented our case.  Both of them assured us to do the needful in the matter.  On account of declaration of Lok Sabha elections, the matter remained unresolved. 

After installation of the 15^th Lok Sabha, once again we took up the matter with the ministry.  The undersigned met Hon’ble Union Labour and Employment Minister Shri. Mallilkarjuna Kharge at Bangalore and also the Hon’ble Union Minister of State for Labour and Employment Shri. Harish Rawat at Delhi along with Com. T.N.Goel and submitted our memorandum on the issue.  We also wrote a letter to the Hon’ble Finance Minister, Government of India.  We continued our vigorous follow-up with the ministries to impress upon them to move the bill in the winter session of the Parliament. We came to know that, there was a stiff opposition from the Private Sector employers and Corporates for enhancement of the gratuity ceiling.  Therefore, though Central Govt. was inclined to move the bill in the Parliament, it could not materialize.

We are glad to understand that the Central Govt. Cabinet has cleared the proposal of enhancement in gratuity ceiling to Rs.10/- lacs.  The bill after clearance from the law ministry will be placed before the Parliament by the Hon’ble Union Labour Minister for amendment to the Payment of Gratuity Act 1972.  The amendment will cover Private Sector employees and all those coming under Payment of Statutory Gratuity.  The maximum ceiling is proposed at Rs. 10/- lacs.  The date of effect may be decided by the Parliament.

Comrades, we have reached the present state of getting approval of the Cabinet through our continued and persistent follow-up with the concerned authorities.  We hope that the bill will be moved in the current budget session of the Parliament. We are following up the matter with the Govt.  We shall advise the members of further developments later.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY