Unions on Same Page with Govt on Doubling Gratuity
Formal sector workers may soon be eligible for up to .₹ 20 lakh tax-free gratuity as central trade unions have agreed on the proposal in a tripartite consultation with the labour ministry. The central trade unions have agreed on doubling gratuity amount ceiling as an interim measure in the meeting on the proposed amendment to Payment of Gratuity Act conducted on Thursday by the labour ministry. The unions demanded the removal of conditions asking to have at least 10 employees in an establishment and minimum five years of service for payment of gratuity. “While accepting the maximum payment limit of .₹ 20 lakh as an interim measure, the unions demanded that the ceilings/ limit with respect to number of employees and years of service should be removed,” the All India Trade Union Congress (AITUC) said.