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Tax-free gratuity limit enhanced to Rs.20 lakhs through gazette notification

Tax-free gratuity limit enhanced to Rs.20 lakhs through gazette notification


Payment of Gratuity (Amendment) Act, 2018 is notified in the Government Gazette on 29th March 2018. The above amendment enables the employees to receive tax-free gratuity  up to Rs 20 lakh from existing Rs 10 lakh  under the Payment of Gratuity Act. According to the notification Payment of Gratuity (Amendment) Act, 2018 (12 of 2018), shall come into force from 29th day of March, 2018.

The Gazette notification also specifies that the total period of maturity leave in the case of female employee shall not exceed twenty-six weeks as part of continuous service under gratuity act.

Related article: How to calculate gratuity amount?

(4) Comments

  1. CV NAIK

    The new Gratuity Amendment states that for government employees the maximum of Rs.20 lakhs is application is from 01/01/2017 whereas for private sector employee it is applicable from 29/03/2018. Why this discrimination in the application of gratuity act for public employee and private employee?

  2. R SUBRAMANIAN

    in my humble opinion, the discrimination between two class of Employees- The Central Govt Employees &Private Sector Employees as regards the application of a Central law, seems to be not in conformity with our Valued Doctrine- EQUALITY.

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