Gratuity for private sector employees raised to Rs 10 lakh

Bringing cheer to thousands of private sector employees, the government on Thursday approved raising the ceiling for payment of gratuity to them from Rs 3.5 lakh to Rs 10 lakh.

The decision was taken at a Cabinet meeting chaired by Prime Minister Manmohan Singh.

The move will bring about parity between government and private sector employees in enjoying equal gratuity benefits. The Sixth Pay Commission recommendation had raised the limit for Central government employees.

Labour and Employment Minister Mallikarjun Kharge had earlier said his Ministry was holding consultations with various stakeholders to arrive at a consensus for raising the ceiling.


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