Govt notifies law for doubling tax-free gratuity to Rs 20 lakh



New Delhi, Mar 31: The government has notified a legislation that double tax-free gratuity for formal sector employees to Rs 20 lakh.

The Payment of Gratuity (Amendment) Bill, 2018, which was passed by the Lok Sabha on March 15 and by the Rajya Sabha on March 22, has been brought in force on March 29 after assent from the President, an official statement said today.

"This will ensure harmony amongst employees in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. These employees will be entitled to receive higher amount of gratuity at par with their counterparts in Government sector," it said.

Earlier, the upper ceiling on gratuity amount under the act was Rs 10 lakh.

With implementation of 7th Central Pay Commission, the ceiling was raised to Rs 20 lakh for the central government employees effective January 1, 2016.

In addition, the Bill also envisaged to amend the provisions relating to calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave from 12 weeks to �such period as may be notified by the Central Government from time to time'.

This period has also been notified as 26 weeks, it said.

However, bank unions including RSS affiliated National Organisation of Bank Workers (NOBW) expressed their displeasure over the notification date.

They demanded that the government should give the benefit of increased limit of gratuity from Rs 10 lakh to Rs 20 lakh for private and public sector employees at par with Central government employees with effect from January 1, 2016.

"Thousands of employees who have been retired since January 1, 2016 have not been able to get the benefit of this increased gratuity. The government cannot discriminate between employees of the Central Government and the private sector and the public sector workers in this way," NOBW said in a statement.

Related news

Don’t Miss

Sensex ends flat at 34,415.58; tech stocks RISE
18 Rohingyas arrested in Tripura for entering country illegally
BMW India launches third generation of SUV X3
Apple working on iPhone SE 2
Now you don't need a commercial licence for taxis and autos
Modi warns Pak from London,stop terror else face surgical strike..Rapes are worrisome, says PM
10 Points: Where has all the cash disappeared from ATMs
Hmm..Deepika walks hand-in-hand with ex Ranbir Kapoor
Pakistan calls India's claims on surgical strike 'baseless'
Chaiwala as PM has made Indians aspirational..Modi targets Gandhi family in London
LIVE: PM Modi and Prince Charles visit exhibition on 5000 Years of Science and Innovation
1993 Mumbai blasts death row convict Tahir Merchant dead
Can dogs predict earthquakes? Read here
Video: There's hope, Indians can see the truth, says Rahul Gandhi
Rape-accused Unnao MLA Kuldeep Singh's 'Y' category security withdrawn
10 Points: Naroda Patiya Massacre Case: All you wanted to know
Jio Magic.. Ambani among Fortune's 50 Greatest Leaders of 2018
BJP protecting rapists, am feeling insecure..Actress quits BJP
Rishi says this cute thing about Big B
From London Modi salutes Army for surgical strike..Pak understands only this language
Eye on Karnataka, PM Modi salutes Lingayat philospher in London
After pat on cheek of journo sparks outrage, TN Governor apologises
"Did I kill 8 members of my family," questions a weeping victim
Yogi's Facebook page is most popular among all chief ministers'
Wedding anniversary special: Never seen before pics of Abhishek-Aishwarya
Deepika Padukone in Time 100 Influential People of 2018 list
'Biggest tragedy is that to settle political scores, even judiciary is scandalised'
Jammu High Court Bar Association clarifies to SC on Kathua Case
Your cash shortage problem will be resolved by tomorrow
Mecca Masjid blast verdict judge Ravinder Reddy asked to attend court again

Most Recent





Most Popular