For Quick Alerts
For Daily Alerts

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.

Budget 2019: Gratuity Limit Increased 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.

Story first published: Friday, February 1, 2019, 13:37 [IST]
Company Search
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