Enhancing gratuity ceiling prior to gazette notification legal


Sir It has come to my notice that many of the psu under the control of central government i.e. IRCON Alimco etc have revised their ceiling of gratuity from 10 lakhs to 20 lakhs w.e.f 01.01.2017with the approval of their board. Although the gazzete notification for enhancing gratuity ceiling from 10 to 20 lakhs has not been published yet.. I want to ask whether it is legally correct to enhance the ceiling prior to gazzete notification.

Answers (2)


129 votes

hi. See they cant take a decision without any sanction from the Government. In case they have done it you ask them first to provide you with the sanction of the Government and then implement it. However, it is quite impossible that they do it without proper sanction.


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141 votes

Any company or a public sector undertaking or for the matter of fact any organization cannot change the ceiling downwards from what is permissible and published in the gazette or already in the statute. Changing the ceiling upwards is not a problem as it is for the benefit of the employees.

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