 bill no li of  2012 the payment of gratuity (amendment) bill, 2012 a billfurther to amend the payment of gratuity act, 1972be it enacted by parliament in the sixth-third year of the republic of india as follows:—1 (1) this act may be called the payment of gratuity (amendment) act, 2012short title and commencementsection 4 of act 39 of 19722 in sub-section (2)  of section 4 of payment of gratuity act, 1972, for the words "at the rate of fifteen days' wages" the words "at the rate of thirty days' wages" shall be substituted statement of objects and reasonsthe sub-section (2) of section 4 of the payment of gratuity act, 1972 provides for payment of gratuity to the employees at the rate of fifteen days' wages based on the rate of wages last drawn for every completed year of service in today's world of high prices and inflation, the gratuity of fifteen days wages for every completed year is too meager at such a small rate, a person cannot get enough amount for post retirement settlement it should therefore be atleast at the rate of thirty days' salary for every completed year of servicethe bill proposing amendments to section 4 of the act seeks to achieve the aforesaid objectiveshence this billrama chandra khuntia financial  memorandumclause 2 of the bill seeks to revise the rate of gratuity from fifteen days' salary per completed year of service to thirty days' salary for every completed year of service, to all the employees employed on wages in any establishment, whether it is public or private the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india it is estimated that an annual recurring expenditure of about rupees one thousand crore will be involved no non-recurring expenditure is likely to be involved extracts from the payment of gratuity act, 1972 (act no 39 of 1972)  4 payment of gratuity—(1) gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,—(a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease  (2) for every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned   rajya  sabha————abillfurther to amend the payment of gratuity act, 1972————(shri rama chandra khuntia, mp)gmgipmrnd—3514rs—26112012