Gratuity Act - Amendment passed in Loksabha Today
-Now it goes to RS
-RS is in Sessions upto 6.04.18
-Thereafter Notification is issued.
-Details like effective date is known only when Notified!
Effect: Personnel (Officers & Staff) in SBI and many other Organizations including private companies are governed by Gratuity Act for eligibility and Tax exemption. All stand to gain substantially by amount,that too tax free
2.Ceiling/Quantum * - Now, with this Amendment, Govt can Notify any amount as ceiling. This is an omnibus amendment. No need to go to Parliament at all in future seeking quantum/ceiling increase. Statement of Objects & Reasons (SO&R) submitted to Loksabha indicates that the Gratuity Ceiling is likelyto be in line with Central Govt (presently Rs.20 Lakhs). All *State Bankers will be benefited by this.
How Gratuity is calculated:
a. 15 days last drawn salary × years of service. (Salary*(15/26)* years of service)
b. Maximum amount specified, i.e., Rs. 20,00,000 (expected in Notification)
Also, least of these is tax free as per Section 10 (ii) of IT Act
A rough calculation what an officer with total length of 33 years may get:
Sal Gratuity Amt
70000 13.33 Lacs
80000 15.23
90000 17.13
100000 19.04
105000 20.00
125000 23.80 (Max is Rs.20 lacs only)
[Pl note Salary is NOT gross Salary- It is BP+DA+Allowances that ranks for Superannuation]
The remarkable achievement is that no bill need to be moved before Parliament henceforth. A Govt Notification is enough. This is what the Trade Unions, lead by AIBEA/Federation were fighting for. Now, there is an opportunity that we can demand revision, whenever it is done to Govt employees.
Trade Unions, lead by *AIBEA are the force behind these improvements.
Be with Association. Be with Trade Union. Let us be connected to our Organization!
Unity & Solidarity always protects, benefits.
-Now it goes to RS
-RS is in Sessions upto 6.04.18
-Thereafter Notification is issued.
-Details like effective date is known only when Notified!
Effect: Personnel (Officers & Staff) in SBI and many other Organizations including private companies are governed by Gratuity Act for eligibility and Tax exemption. All stand to gain substantially by amount,that too tax free
2.Ceiling/Quantum * - Now, with this Amendment, Govt can Notify any amount as ceiling. This is an omnibus amendment. No need to go to Parliament at all in future seeking quantum/ceiling increase. Statement of Objects & Reasons (SO&R) submitted to Loksabha indicates that the Gratuity Ceiling is likelyto be in line with Central Govt (presently Rs.20 Lakhs). All *State Bankers will be benefited by this.
How Gratuity is calculated:
a. 15 days last drawn salary × years of service. (Salary*(15/26)* years of service)
b. Maximum amount specified, i.e., Rs. 20,00,000 (expected in Notification)
Also, least of these is tax free as per Section 10 (ii) of IT Act
A rough calculation what an officer with total length of 33 years may get:
Sal Gratuity Amt
70000 13.33 Lacs
80000 15.23
90000 17.13
100000 19.04
105000 20.00
125000 23.80 (Max is Rs.20 lacs only)
[Pl note Salary is NOT gross Salary- It is BP+DA+Allowances that ranks for Superannuation]
The remarkable achievement is that no bill need to be moved before Parliament henceforth. A Govt Notification is enough. This is what the Trade Unions, lead by AIBEA/Federation were fighting for. Now, there is an opportunity that we can demand revision, whenever it is done to Govt employees.
Trade Unions, lead by *AIBEA are the force behind these improvements.
Be with Association. Be with Trade Union. Let us be connected to our Organization!
Unity & Solidarity always protects, benefits.
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