GET Stock QuotesNews18 APP
News18 English
»
1-min read

Tax-free Gratuity Ceiling Raised to Rs 20 Lakh in Private Sector

The notification follows changes in the Payment of Gratuity Act which had empowered the government to fix the ceiling of the retirement benefit through an executive order.

PTI

Updated:March 29, 2018, 10:46 PM IST
facebookTwittergoogleskypewhatsapp
Tax-free Gratuity Ceiling Raised to Rs 20 Lakh in Private Sector
Image for representation.
Loading...
New Delhi: The government on Thursday notified doubling of the limit of tax-free gratuity to Rs 20 lakh in private sector.

The notification follows changes in the Payment of Gratuity Act which had empowered the government to fix the ceiling of the retirement benefit through an executive order.

The amendment bill approved by Parliament earlier in the month had also empowered the government to fix the period of maternity leave.

Accordingly, the central government has fixed the total period of maternity leave in the case of a female employee to 26 weeks.

After implementation of the 7th Central Pay Commission, the ceiling of tax-free gratuity amount for the central government employees was increased from Rs 10 lakh to Rs 20 lakh. The unions have been demanding for inclusion of the change in the Payment of Gratuity Act.

So far, formal sector workers with five or more years of service are eligible for Rs 10 lakh tax-free gratuity after leaving job or at time of superannuation.

The Payment of Gratuity Act, 1972, was enacted to provide for gratuity payment to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments.

The law is applicable to employees, who have completed at least five years of continuous service in an establishment that has 10 or more persons.

The change with respect to maternity leaves comes against the backdrop of the Maternity Benefit (Amendment) Act, 2017, enhancing the maximum maternity leave period to 26 weeks.
| Edited by: Bijaya Das
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 261.60 -57.60 -18.05
Reliance 1,229.45 +18.70 +1.54
Tata Steel 641.90 +20.70 +3.33
HDFC Bank 1,985.30 +23.95 +1.22
Vedanta 233.25 +3.15 +1.37
Company Price Change %Gain
Yes Bank 261.75 -56.75 -17.82
ONGC 179.50 +2.85 +1.61
Vedanta 233.20 +3.20 +1.39
Godrej Consumer 837.50 +13.80 +1.68
Tata Steel 641.65 +21.20 +3.42
Top Gainers
Company Price Change %Gain
Axis Bank 631.10 +22.30 +3.66
Tata Steel 641.95 +20.75 +3.34
ICICI Bank 330.15 +9.20 +2.87
BPCL 372.90 +7.85 +2.15
GAIL 394.25 +9.70 +2.52
Company Price Change %Gain
Axis Bank 631.80 +22.60 +3.71
Tata Steel 641.70 +21.25 +3.42
ICICI Bank 330.15 +9.30 +2.90
Asian Paints 1,319.70 +30.35 +2.35
M&M 965.90 +18.60 +1.96
Top Losers
Company Price Change %Gain
Yes Bank 260.90 -58.30 -18.26
Tech Mahindra 763.00 -6.95 -0.90
Eicher Motors 28,313.40 -97.10 -0.34
Infosys 716.80 -2.95 -0.41
HCL Tech 1,085.00 -2.30 -0.21
Company Price Change %Gain
Yes Bank 261.00 -57.50 -18.05
Infosys 716.70 -3.70 -0.51
HUL 1,647.05 -1.85 -0.11
TCS 2,075.05 -1.85 -0.09

Live TV

Loading...
Loading...