The ceiling of gratuity amount under the Payment of Gratuity Act, 1972, has been raised from time to time
Income tax exemption limit on gratuity doubled to Rs 20 lakh from existing Rs 10 lakh: Labour ministry
The labour ministry's move will benefit employees who are not covered by the Payment of Gratuity Act, 1972.
Parliament clears key laws promising Rs 20-lakh tax free gratuity, more than 12 days maternity leave
The amendment to the payment of gratuity law comes in the backdrop of Maternity Benefit (Amendment) Act, 2017 enhancing the maximum maternity leave period to 26 weeks.
Payment of Gratuity Bill passed: Law allows govt to change tax-free gratuity amount, maternity leave with executive order
Parliament on Thursday passed a key bill that will empower the government to fix the amount of tax-free gratuity and the period of maternity leave with an executive order.
The unions were of the view that the delay of eight months for employees covered under the Payment of Gratuity Act should not result in adversely affecting the interest of the concerned employees.
After the amendment in the Act, formal sector workers would be eligible for up to Rs20 lakh tax-free gratuity.