NEW DELHI: The Government today notified doubling of the limit of tax-free gratuity to Rs 20 lakh in private sector.
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.
Accordingly, the Central Government has fixed the total period of maternity leave in the case of a female employee to 26 weeks.
After implementation of the 7th Central Pay Commission, the ceiling of tax-free gratuity amount for the Central Government employees was increased from Rs 10 lakh to Rs 20 lakh. The unions have been demanding for inclusion of the change in the Payment of Gratuity Act. (AGENCIES)
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