The Lok Sabha on Thursday gave its nod for a Bill to amend the existing gratuity law to remove the current ceiling of Rs 10 lakh and empower the Centre to notify the ceiling from time to time. The Payment of Gratuity (amendment) Bill was passed in the lower house by voice vote amid a din and slogan shouting by the Opposition members and NDA ally, the Telugu Desam Party.

Labour Minister Santosh Kumar Gangwar moved the Bill for passage. Gangwar said the Centre may notify tax-free gratuity of Rs 20 lakh for the organised sector. The Payment of Gratuity Bill, among other things, empowers the Centre to notify the period of maternity leave eligible for qualifying as "continuous service" under the gratuity law.