Budget 2019: Gratuity Limit Increased to Rs 30 Lakh

The Interim Budget presented today primarily focused on benefits to the rural and middle-class section of the country. Speaking in the context of the 7th pay commission, Interim Finance Minister Piyush Goyal said that the gratuity ceiling limit will be increased from the existing Rs 10 lakh to Rs 30 lakh.

Gratuity is the amount paid by an employer to the employee at the end of employment for their services rendered. To be eligible for this benefit, one should complete at least 5 years of service with the employer.

Earlier, the Payment of Gratuity (Amendment) Bill, 2018 that was brought in force on 29 March 2018 had increased the ceiling for gratuity limit to Rs 20 lakhs for government servants. Additionally, for the calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave the period, this was increased from 12 weeks to 26 weeks.