Supreme Court Judgement on Gratuity for Gramin Dak Sevak on Gratuity Act,1972

Report & Judgement

Supreme Court Judgement on Gratuity for Gramin Dak Sevak on Gratuity Act,1972

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According to Supreme Court of India and Punjab & Haryana High Court judgements GDS are eligible for Gratuity according to the Payment Gratuity Act,1972.

The Payment of Gratuity Act 1972 applies to establishments with 10 or more workers. Gratuity is payable to the employee if he or she resigns or retires.

According to this Act, the date of Appointment , date of Retirement and the amount of last drawn wages were taken in to consideration for grant of Gratuity payable at the rate of 15 days for each completed year of service and part thereof.

Recently Cabinet approved “Introduction of the Payment of Gratuity ( Amendment )Bill 2017”

The Payment of Gratuity (Amendment) Bill 2017 is applicable to all Private sector / Public sector undertakings / autonomous organisations under Government of India who are not covered under CCS (Pension Rules ).

The Indian government mandates that this payment be at the rate of 15 days salary of the employee for each completed year of service subject to a maximum of ₹ 2000000.

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