The government today notified doubling of the limit of tax-free gratuity to Rs 20 lakh in all sector. But it is totally silent on effective date for payment. It says that act has come into force on 29th of March 2018. It appears to me that enhanced amount of gratuity will be payable to only those employees who retire on or after 29th March 2018. But I think we have to wait till final circular comes out. Because as per gratuity bill effective date are 01.01.2016
The notification follows changes in the Payment of Gratuity Act which had empowered the government to fix the ceiling of the retirement benefit through an executive order.
The amendment bill approved by Parliament earlier in the month had also empowered the government to fix the period of maternity leave.
When, GOI has extended the benefit w.e.f.01.01.16 to Central Govt Employees. Why not for others. So I think it should be 01.01.2016 for all
The notification follows changes in the Payment of Gratuity Act which had empowered the government to fix the ceiling of the retirement benefit through an executive order.
The amendment bill approved by Parliament earlier in the month had also empowered the government to fix the period of maternity leave.
When, GOI has extended the benefit w.e.f.01.01.16 to Central Govt Employees. Why not for others. So I think it should be 01.01.2016 for all
1 comment:
The employer pays an employee a one-time monetary benefit in exchange for the employee's services. In order to receive a gratuity payout, an employee must work for the same company for at least five years in a row. Thank you for the valuable blog. It is very helpful. To know more visit: Gratuity Calculation Formula
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