Another good news after 7th Pay Commission implementation! Lok Sabha passes bill to double tax-free gratuity to Rs 20 lakh

The Lok Sabha today has paid a bill of gratification (Amendment) Bill, which seeks to empower the government to fix maternity leave and tax-free gratuity amount with executive order. After the payment of the Gratuity (Amendment) Bill in the Rajya Sabha, the government will be able to increase the tax-free donation limit for the existing tax of 10 lakhs for employees under the Payment of Gratuity Act. After the implementation of Seventh Central Pay Commission, the limit of gratuity amount increased from Rs 10 lakh to 2 million for the Central Government employees. Unions have demanded to include changes in the Act.


Bill passed today in the Lok Sabha, because the ongoing protest on many issues went into a row in the second week. Earlier, Parliamentary Affairs Minister Ananth Kumar said that the payment of the Grapeity (Amendment) Bill was an important law and demanded the support of the opposition. The bill informs the duration of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity limit from time to time without amending the law.

To pass the bill for passing, Labor Minister Santosh Kumar Gangwar said that this is a very important law for employees, especially women.

Now, the bill will go into the Upper House for consideration and passage. Presently, formal sector workers with service of five or more years are entitled to tax free gratuity of Rs.10 lakhs during the leave or leave of service. A senior government official said that with the Central Government, it wants to provide tax free gratuity of Rs 20 lakh to the organized sector workers.



The gratuity act, 1972 was paid for gratuity payment for workers engaged in factories, mines, oil fields, horticulture, ports, railway companies, shops or other establishments. The law applies to those employees who have served at least five years of continuous service in an establishment, in which there are 10 or more people
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