The most awaiting gratuity limit increased to 20 lakhs gazette notification press note has released so if you are in dilemma of whether the gratuity amendment bill passed or not then answer is passed. and the effective date of enhanced gratuity is 29 March 2018. As per this gratuity amendment 2018 bill, the tax-free gratuity limit amount increased to 20 lakhs from 10 lakhs. It is really a good news for all the private sector and public sector employees who are under the payment of gratuity act 1972.
Gratuity Limit Increased To 20 Lakhs Gazette Notification & Effective Date Of Enhanced Gratuity
The central government has released gratuity limit increased to 20 Lakhs Gazette Notification press note, you can find the press not here.
At present, the tax-free ceiling limit for gratuity amount underpayment of gratuity act 1972 is 10 lakhs, but after implementation of 7th central pay commission the gratuity limit for central government employees under Central Civil Services pension rules 1972 has been increased to 20 lakhs. Along with inflation, this is also one of the main reason behind the idea of government to implement the gratuity 20 lakhs notification for remaining public sector and private sector employees.
Also read: How to calculate gratuity
The main aim of gratuity act is to provide social security to the employees after their retirement, it may be due to the superannuation or physical disablement. Any organization which employs 10 or more than 10 employees will come underpayment of gratuity act 1972. Any employee who has 5 years of continuous service in an organization will be eligible for gratuity.
This bill also made a provision to consider the maternity leaves of women employees as a continuous service. Till now only 12 weeks of maternity leaves are considering as continuous service of gratuity but in last year the maternity leaves were increased to 26 weeks. As per this bill, the maternity leaves of more than 12 weeks will also be considered as continuous service under gratuity. Do share your opinions and doubts on gratuity 20 lakhs notification.