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Queries Participated

Anonymous   22 October 2009 at 16:52

Gratuity ceiling from two diifferent dates psus

Sir,

Govt. of India while implementing VIth pay comission recommendations has raised the Gratuity ceiling limit from Rs.3.5 to RS.10 Lakhs for central Govt. & 69 PSU employees from 01.1.2006.

But for other central PSUs the same is from 1.1.2007 linking it to pay revision due date,instead of 1.1.2006. Thus the retirees 1.1.2006 to 31.12.2006 from these PSUs are loosing a huge amount to an extent of Rs.6.5 Lakhs. Gratuity being a scoial security bnefeit paid on retirement (for the services rendered while wage revision is applicablel for those in service) is intended to take care of retirement life.

Is giving such retirement benefit from two different dates (central Govt.& 69 PSUs from 1.1.2006 & other psus from 1.1.2007) will not amount to injustice for the latter and is it legally valid. What is the procedure to seek legal justice in this regard.

Laxminarasimhulu.Garlapati   28 June 2009 at 13:17

Gratuity & pension on superannuation

Sir attachment ( previous communication of DPE issued in the year 1995) is copied below for ready reference.

" The Department of Public Sector Enterprises in its Circular No.2 (50)/86-DPE(WC) dated 19.07.1995 has stated:

“Public Sector Enterprises are considered as ‘State’ under the provisions of article 12 of the constitution of India. Both the Supreme Court and the various High Courts have given directions in the recent past either for restoration of parity in the scales of pay in one PSE with that of another PSE or removal of anomalies. In order to avoid further litigation, it has, therefore, been proposed that the scales of pay of the incumbents of the top posts, executives holding posts below the board level and non-unionized supervisors would be similar in all PSEs irrespective of profit or loss made by them”.