Introduction
The Government of India has recently increased the gratuity limit to 20 lakhs with effect from March 29, 2018. This Gazette Notification is a major step towards providing financial security to employees in the country. The enhanced gratuity limit will benefit employees who have worked for more than five years in an organization and will help them to receive a higher amount of gratuity upon retirement. This notification will also help to ensure that employees receive a fair amount of gratuity for their long years of service. The effective date of the enhanced gratuity limit is March 29, 2018.
Gratuity Limit Increased To 20 Lakhs Gazette Notification & Effective Date Of Enhanced Gratuity
The Government of India has increased the limit of gratuity to Rs. 20 lakhs for employees covered under the Payment of Gratuity Act, 1972. The notification was issued on 29th March 2018 and the enhanced limit of gratuity will be effective from 1st April 2018.
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The most awaiting gratuity limit increased to 20 lakhs gazette notification press note has released so if you are in dilemma of whether the gratuity amendment bill passed or not then answer is passed. and the effective date of enhanced gratuity is 29 March 2018. As per this gratuity amendment 2018 bill, the tax-free gratuity limit amount increased to 20 lakhs from 10 lakhs. It is really a good news for all the private sector and public sector employees who are under the payment of gratuity act 1972.
Gratuity Limit Increased To 20 Lakhs Gazette Notification & Effective Date Of Enhanced Gratuity
Download Gratuity 20 Lakhs Gazette Notification
The central government has released gratuity limit increased to 20 Lakhs Gazette Notification press note, you can find the press not here.
Click here to read the full press note of gratuity amendment act 2018
At present, the tax-free ceiling limit for gratuity amount underpayment of gratuity act 1972 is 10 lakhs, but after implementation of 7th central pay commission the gratuity limit for central government employees under Central Civil Services pension rules 1972 has been increased to 20 lakhs. Along with inflation, this is also one of the main reason behind the idea of government to implement the gratuity 20 lakhs notification for remaining public sector and private sector employees.
Also read: How to calculate gratuity
The main aim of gratuity act is to provide social security to the employees after their retirement, it may be due to the superannuation or physical disablement. Any organization which employs 10 or more than 10 employees will come underpayment of gratuity act 1972. Any employee who has 5 years of continuous service in an organization will be eligible for gratuity.
This bill also made a provision to consider the maternity leaves of women employees as a continuous service. Till now only 12 weeks of maternity leaves are considering as continuous service of gratuity but in last year the maternity leaves were increased to 26 weeks. As per this bill, the maternity leaves of more than 12 weeks will also be considered as continuous service under gratuity. Do share your opinions and doubts on gratuity 20 lakhs notification.
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Gratuity Limit Increased To 20 Lakhs Gazette Notification & Effective Date Of Enhanced Gratuity
The Government of India has recently increased the gratuity limit to 20 lakhs from the existing 10 lakhs. This notification was published in the Gazette of India on 29th March, 2018. The enhanced gratuity limit will be effective from 1st April, 2018.
The gratuity limit was last revised in 2010 when it was increased from 3.5 lakhs to 10 lakhs. This revision was made to ensure that the employees receive a fair amount of gratuity for their service. The new limit of 20 lakhs will provide a much needed relief to the employees.
The gratuity is a lump sum payment made to an employee at the time of retirement or termination of service. It is calculated based on the number of years of service and the last drawn salary of the employee. The gratuity is paid by the employer and is exempt from tax up to a certain limit.
The enhanced gratuity limit of 20 lakhs will benefit the employees who have been in service for a long period of time. It will also help the employees who have been drawing a higher salary. This will ensure that the employees receive a fair amount of gratuity for their service.
The enhanced gratuity limit will be applicable to all the employees who are eligible for gratuity. The employees who are already receiving gratuity will also be eligible for the enhanced limit. The employees who are yet to receive gratuity will be eligible for the enhanced limit from the date of their retirement or termination of service.
The enhanced gratuity limit of 20 lakhs will be a great relief to the employees. It will ensure that the employees receive a fair amount of gratuity for their service. This will also help the employees who have been in service for a long period of time and have been drawing a higher salary.
