Retirement Gratuity Ceiling hiked to Rs.20 lakh for bank employees and officers – AIBEA

Retirement Gratuity Ceiling hiked to Rs.20 lakh for bank employees and officers – AIBEA

Joint Circular on Gratuity Ceiling

CIRCULAR TO ALL UNITS & MEMBERS

March, 2, 2017

Dear Comrades,

Improvements in Gratuity under Gratuity Act

Our units are aware that Gratuity is one of the important retirement benefits for the bank employees and officers. In all Banks ( except SBI ), Gratuity is paid as per formula under BPS/OSR or under the Gratuity Act whichever is higher. (In SBI, Gratuity is payable under the Act only).

While there is no ceiling for Gratuity under BPS/OSR, under the Act, there is a ceiling which is at present Rs. 10 lacs. (from 25-5-2010). When an employee or officer retires from the Bank, his/her Gratuity entitlement would be calculated both under the Act and under BPS/OSR and the higher of the two will be paid.

For example, a senior substaff/Daftary retiring after 40 years’ service would be eligible for ( approx.) Rs. 5 lacs under BPS and Rs. 8 lacs under the Act and hence would be paid Rs. 8 lacs as Gratuity.

A senior Clerk/Special Asst. would be eligible for Rs. 9.50 lacs under the BPS and Rs. 10 lacs under the Act and hence would be paid Rs. 10 lacs.

A senior General Manager of a Bank retiring after 40 years’ service would be eligible for Rs. 17 lacs under the OSR and Rs. 10 lacs under the Act and hence would be paid Rs. 17 lacs.

Due to continued inflationary trend and erosion in value of rupee, AITUC and all other Central Trade Unions have been demanding improvement/removal of ceiling under the Gratuity Act. Due to their effort, the ceiling was increased from Rs. 1 lac to Rs. 2.50 lacs, and then to Rs. 3.50 lacs and to Rs. 10 lacs in May, 2010. They have been demanding for removal of ceiling on Gratuity under the Act.

AITUC and Central Trade Unions have been pursuing this issue for the last more than 4 years through various programmes and struggles.

Thus AIBEA and AIBOA have been part and parcel of all these programmes and strikes on the 12 Points Charter of Demands of the Central Trade unions which includes the demand for improvement in Gratuity Act.

AITUC and Central Trade Unions have been following up these demands with the Government and as a result, recently on 23-2-2017, the Central Government called for a Tripartite meeting on the issue of revising the ceiling on Gratuity. From AITUC, its Secretary, Com D L Sachdev participated and put forth the following suggestions.

i) While there should be no ceiling for Gratuity, as an interim measure, Government’s proposal to increase in ceiling of Rs. 20 lacs can be accepted.
ii) The revised ceiling should be made effective from January, 2016.
iii) Minimum service of 5 years for eligibility for Gratuity to be removed.
iv) Gratuity to be paid at 30 days wage per year instead of 15 days wage as atpresent.
v) All factories/establishments to be covered by the Act irrespective of number of workers.

All these matters have to be finally cleared by the Labour Ministry and then by Finance Ministry and then to be brought to the Parliament for amendment to the Gratuity Act.

Units are aware that improvement in Gratuity Act has been one of the demands of our strike on 28-2-2017. We are in touch with the AITUC and will keep our units informed of any further development in this regard.

With greetings,

Yours comradely,

sd/- 

S. NAGARAJAN

GENERAL  SECRETARY

AIBOA

sd/-

C.H. VENKATACHALAM

GENERAL SECRETARY

AIBEA

Source: AIBEA

7th CPC increased Gratuity Ceiling limit – 20 lakh from 1.1.2016

Payment of Gratuity (Amendment) Bill, 2017 : Increase maximum limit of gratuity in Private Sector

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41 thoughts on “Retirement Gratuity Ceiling hiked to Rs.20 lakh for bank employees and officers – AIBEA”

  1. Pay Commission should be acceptable to our bank union/Association. Bipartite settlement is giving a poor result in comparison with PC. We should accept the truth.

    Reply
  2. Till today no mandate for increase in Gratuity. No Bill passed in Central Government. Now it is time all retired Bankers and other sectors to send emails to government for their rights. I request all the retired employees after 1.1.16 to write mail for demanding increase in Gratuity at the earliest at par with RBI and Central Government employees. Please do this at the earliest. The related unions also requested to take up the matter with government.

    Reply
    • Why it is dill-doll case when gratuity ceiling increased of Central Govt & RBI then why
      not uniform act so it will automatically increase with retrospective date 01.01.2016.It is only
      playing with the employee of Banks who do hard work even without getting legitimate damand
      fulfilled.

      Reply
  3. We are unable to know the reasons behind sluggish action of government for gratuity amendment for Bank employees
    which is pending since 15/03/2017.we urge government to take necessary action against erring person s.

    Reply
  4. Inspire of request from various corners gratuity act is still pending for implementation.The banks RETIRED employees since 01/01/2016 request the authorities for early implementation of the act wef 01/01/2016 at per with the central govt and RBI employees so that they will not fall in prey for delayed implementation.

    Reply
  5. The Bank union leaders should take up the matter with the appropriate authorities so that the gratuity act is effected from 01/01/2016 positively at per with the central govt and RBI employees and the retired bank employees since 01/01/2016 may not fall in prey for delay as it was happened earlier for bank employees.

    Reply
  6. Unnecessary delay for implementation of gratuity in Bank hampers the retired employee since 1/1/2016. PL do at the earliest.

    Reply
  7. Sir already delayed for hike of gratuity for RS.20 lacs tax free ceiling for bank employee pl resolve the same

    Reply
  8. Gratuity ceiling should be increased w.e.f. 1.1.2016.The unions should mount pressure on management and Govt..The latest updates should be provided.

    Reply
  9. Demonetization to collection of statutory dues bank employees are preferred but for increasing gratuity ceiling they are deferred. Are they not indian or not voter?

    Reply
  10. when is gratuity ceiling of Rs 20 lakh is going to be implemented.It is almost 20 months when this news that gratuity is going to be increased wef01.01.16 was announced but I don’t find any progress in the matter So much talk of quick decision by the government is all farce! Had it been MPS PRIVILEGE I bet it would have been done in jiffy. It is only few thousand retired bank employees and few thousand votes can’t effect any election results ..Isn’t it

    Reply
  11. Recently Parliament Moonson Session is completed. But our issue on Gratutiy increase upto Rs. 20 lacs has not been passed by the Parliament. What will be the fate of retiring bank employees ? I think our Federation should start strong protest followed by continuous strike to achieve our legitimate demand.. Please reply.

    Reply
  12. Gratuity being the terminal benefit to the employee from the employer only towards repaying in kind for the unsolicited loyalty & gratitude shown by the employee to the employer, there shall be no interference by the government in the relationship between the employee & employer. When the government itself is honouring it’s employees with Rs. 20 lakh as gratuity from 01.01.2016, why this partiality for CPSUs & Others. Definitely​, we expected a better, logical, benevolent & motherly treatment from the government. We hope that the government will realize this aberration & rectify the situation in the right spirit.

    Reply
  13. It was promised by Labour minister that bill for revised gratuity will place in Monsoon session . Since Monsoon session is over nothing has been heard till date .

    Reply
  14. Sir, I retired in 2016 February.govt declare increase of gratuity ceiling to R’s.20 lakh .But,it is irony of fact that due to delay dealing gratuity arrear not yet cleared. Retired person is most respectful citizen in the country because today’s India came from hard labour of past.I like to draw attention of finance minister to clear the gratuity ceiling and issue instruction to bank management to pay immediately to the retired staff and honoured their legitimate demand w.e.f January 2016 as per central govt.

    Reply
  15. Pingback: Payment of Gratuity (Amendment) Bill, 2017 : Increase maximum limit of gratuity in Private Sector – Central Govt Employees and Pensioners News
  16. I retired from pnb as senior manager in November 2016. Whether I would be entitled for enhanced gratuity as per guidelines. If yes, appx what would be the amount. As at the time of retirement I received only 10 lacs.

    Reply
    • The silence of AIBEA or UFBU over the earlier claimed effective date of Gratuity amendment in line with 7th Pay commission i.e. 1..01.2016 and then accepting 30.4.2018 as effective date is surprising. It shows also the duplicity of the Central Government by allowing effective date 01.01.2016 to Central Govt Employees and giving another effective date to PSUs including Banks.

      NBOW earlier had shown its displeasure but now all Unions are silent.

      Reply
  17. How much time do they take to clear the Gratuity or any benefit to salaried employees or pensioners? While their benefits such as pensions for MPs etc are cleared with immediate effect?

    Reply
    • Because it involves the lawmakers there will be no difference between any party. For their own benefit they will all stand united and even the apparent show of difference will never come up for public consumption.Even the electoral funding can be legalized with retrospective effect.

      it is the reason pension/ pay hike all are given with immediate effect. Since salaried employees are employees only. you can not expect benefits as fast as the MPs

      Reply
  18. I am retired Senior ManagerSir, on 31 May 2017 retired. I got only 11.80 lakhs gratuity, as I joined bank on 21 Nov 1978. Whether I will get arrears of gratuity amount how much and when as I have to conduct marriage of my daughter

    Reply
  19. I retired from SBI on 31/10/2017 as Deputy Manager. At the time of retirement, I received Rs. 10. 00 lacs. Whether I would be entitled for enhanced gratuity amount?

    Reply
  20. Sir, I have been retired on 31\12\2016, Am I entitled to get get arrear gratuity.

    Ajoy Kumar Paul
    Retired staff of SBI (mANAGER)

    Reply
  21. I have retired from a nationalised bank on 30/06/2016 . I have got gratuity for 10 lacks . Now the gratuity level has been increased . As per cpc the limit will be applicable with effect from 01/01/2016. Now my question is whether I will be eligible to get additional applicable amount ?

    Reply
  22. I gave vrs and retired as an officer in karnataka bank as on 16/08/2016.whether our bank will settle the difference of gratuity as i got only 10 lakh at the time of retirement..

    Reply
  23. It nothing but making fool who retired before 29.3.18
    For CENTRAL GOVT emloyees itisapplicable wef 1.1.16.Now we are compelled to think that we are not the citizen of India.Banks union is nothing but group of dumb & deaf.No one is going to bother about employees retired between 1.1.16 and 29.3.18.

    Reply
  24. I retired as Sr. Manager from BOI on 31.03.2018 upon superannuation. As per gratuity act my eligibility of gratyuity was aaround Rs.23.00 lacs, but received Rs.20.00 lacs as per revised Gratuity Act,2018 w.e.f. 29.03.2018. Now I surprised that my HRMS Deptt., has informed me to pay Income Tax of about Rs.2.12 lacs on Gratuity amount. Kindly guide me the correct position of Tax reliefe available on Gratuity amount to we Bank employees. Kindly convey correct/latest position.

    Reply

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