Gratuity Limit Upped For Private Sector Employees

Parliament

has recently passed the Payment of Gratuity (Amendment) Bill, 2018, which ups the gratuity limit of private sector employees and brings it on a par with their counterparts in the public sector. The current upper ceiling on gratuity amount under the Act is ` 10 lakh, which has been increased to ` 20 lakh, and the receivable is taxfree. Earlier, Provisions for central government employees under the Central Civil Services (Pension) Rules, 1972, had an upper limit of

` 10 lakh but the amount was doubled by the 7th Central Pay Commission.