For Quick Alerts
For Daily Alerts

    Gratuity Bill To Double Tax-Free Limit to 20 Lakhs Passed By Parliament

    By Staff

    Parliament today 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 Rajya Sabha, which has failed to transact any significant business over the last fortnight due to protests by various parties, today passed the Payment of Gratuity (Amendment) Bill without discussion.

    Gratuity Bill To Double Tax-Free Limit to 20 Lakhs Passed By Parliament

    The bill moved by Labour Minister Santosh Kumar Gangwar was passed by a voice vote. The Lok Sabha had given its approval to the important bill last week. The legislation will enable the government to enhance the ceiling of tax-free gratuity to Rs 20 lakh from the existing Rs 10 lakh for employees falling under the Payment of Gratuity Act.

    After the implementation of the 7th Pay Commission, the ceiling of gratuity amount for central government employees has doubled to Rs 20 lakh.

    It also allows the government to fix the period of maternity leave for female employees as deemed to be in continuous service in place of the existing 12 weeks. 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.

    Source: PTI

    Read more about: gratuity bill parliament
    Story first published: Thursday, March 22, 2018, 12:54 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    Notification Settings X
    Time Settings
    Clear Notification X
    Do you want to clear all the notifications from your inbox?
    Settings X
    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more