It is almost certain to have passed the Gratuity Payment Amendment Bill, 2017 in the coming budget. With this bill, the government has doubled the tax free gratuity limit to 20 lakh rupees for employees of the organized sector.
At present, formal regional workers are entitled to tax free gratuity of Rs.10 lakhs on leaving the job or retiring after working for five or more years. But after getting this bill, the limit of tax-free gratuity will be doubled to Rs 20 lakh.
According to a source, "Gratuity Payment Amendment Bill 2017 will be passed in the budget session of Parliament, expected to be started by the end of this month." He said that the government wants to give a free tax of Rs 20 lakh to employees of an organized sector so that they can come to the same level as the center staff.
In the Lok Sabha last month, the bill was introduced in the winter session of Parliament. After the bill is passed by Parliament, the government will not need to bring it again to fix the amount of tax-free gratuity.
This bill allows the government to inform maternity leave and gratuity which could be obtained by the employees working under central law first.
This bill was introduced by the Labor Minister Santosh Kumar Gangwar in the Lok Sabha on December 18, 2017. This provision was similar to the Central Government employees in respect of gratuity under the Central Civil Services (Pension) Rules, 1972, but after implementing the recommendations of the Central Pay Commission's recommendations, the 7th Pay Commission Raised Rs 20 lakhs.
Given the inflation and salary increase in the case of employees working in the private sector, they also decided to increase the limit of gratuity. The Government believes that for the private sector workers under the Gratuity Payment Act 1972, the gratuity limit should also be amended. Accordingly, the Government has initiated the amendment to the Gratuity Payment Act, 1972 which is applicable to the establishments employing 10 or more employees.
At present, formal regional workers are entitled to tax free gratuity of Rs.10 lakhs on leaving the job or retiring after working for five or more years. But after getting this bill, the limit of tax-free gratuity will be doubled to Rs 20 lakh.
According to a source, "Gratuity Payment Amendment Bill 2017 will be passed in the budget session of Parliament, expected to be started by the end of this month." He said that the government wants to give a free tax of Rs 20 lakh to employees of an organized sector so that they can come to the same level as the center staff.
In the Lok Sabha last month, the bill was introduced in the winter session of Parliament. After the bill is passed by Parliament, the government will not need to bring it again to fix the amount of tax-free gratuity.
This bill allows the government to inform maternity leave and gratuity which could be obtained by the employees working under central law first.
This bill was introduced by the Labor Minister Santosh Kumar Gangwar in the Lok Sabha on December 18, 2017. This provision was similar to the Central Government employees in respect of gratuity under the Central Civil Services (Pension) Rules, 1972, but after implementing the recommendations of the Central Pay Commission's recommendations, the 7th Pay Commission Raised Rs 20 lakhs.
Given the inflation and salary increase in the case of employees working in the private sector, they also decided to increase the limit of gratuity. The Government believes that for the private sector workers under the Gratuity Payment Act 1972, the gratuity limit should also be amended. Accordingly, the Government has initiated the amendment to the Gratuity Payment Act, 1972 which is applicable to the establishments employing 10 or more employees.
