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The Union Cabinet approved a proposal to enhance the gratuity of the employees to Rs 10 lakhs from the existing Rs 3.5 lakhs to benefit lakhs of workers with long years of service and higher pay scales.

The proposal of the Labour Ministry to enhance the ceiling of the gratuity was approved at a Cabinet meeting held in the Parliament House this evening, Union Labour Minister M Mallikarjuna Kharge told reporters.

The demand for raising the gratuity ceiling was made by the Indian National Trade Union Congress (INTUC) Conference held at Kochi in October last year where Mr Kharge and Finance Minister Pranab Mukherjee had given their in principle nod for implementing the promise.

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