Revised Gratuity Payment to Bankers effective from 29th March 2018 – Public Sector Banks has issued the notification for revised gratuity payment amounting Rs 20 lakhs to bankers since 29th March 2018. As per the ministry of labour and employment vide gazette notification dated 29th March 2018, the ceiling on the amount of gratuity payment under section 4 of the Payment of Gratuity Act, 1972 has revised from existing Rs 10 lakhs to Rs 20 Lakhs.
Key Highlights :
Gratuity Payment in case of Maternity – Further while making payment to gratuity, the central government specifies as per section 2A of Payment of Gratuity act, 1972 that the total period of maternity leave in case of female employee shall not exceed twenty six weeks.
The formula of calculating the gratuity is very simple i.e. multiple of Basic pay along with dearness allowance and length of service with 15 and divisible to 26 i.e. the actual working days in month.
Gratuity Amount = Salary* x 15 x No. of years of service ÷ 26