Recent news reports state that the Labour Ministry is proposing to amend the Payment of Gratuity Act, 1972, (POGA) to increase the maximum gratuity payable from the present Rs 350,000 (US$7,500) to Rs1 million. The ministry is seeking comments from the employers and workers’ union, after which a decision will be made.
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The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.