NEW DELHI: Parliament on Thursday handed Payment of Gratuity(Amendment) Bill 2017 paving the best way for doubling the prohibit of tax loose gratuity to Rs 20 lakh and empowering the federal government to mend the ceiling of the retirement benefit via an executive order.
The Rajya Sabha handed the bill, which used to be licensed by way of the Lok Sabha closing week, on March 15. Besides enabling the central govt to mend the ceiling of tax loose gratuity, the bill can even empower it to mend the duration of maternity go away via executive order.
It also notifies the duration of maternity go away as part of steady service and proposes to empower the central govt to inform the gratuity ceiling now and again without amending the regulation.
Rajya Sabha Chairman M Venkaiah Naidu said in the Upper House that he had met leaders of various parties in the morning and it used to be made up our minds that the House would take up the crucial Payment of Gratuity (Amendment) Bill because it used to be of significance to the workers.
Labour Minister Santosh Kumar Gangwar then moved the bill for attention and passage. It used to be handed by way of a voice vote and not using a debate.
The labour ministry later said in a observation that the Bill also envisages amending the provisions in relation to calculation of continuing service for the aim of gratuity in case of female workers who're on maternity go away from "twelve weeks" to such duration as is also notified by way of the central govt now and again.
Prime Minister Narendra Modi tweeted: "A significant pro-people measure passed in Parliament. Will benefit lakhs of Indians."
After implementation of the seventh Central Pay Commission, the ceiling of tax loose gratuity quantity for central govt workers used to be increased from Rs 10 lakh to Rs 20 lakh. The unions were hard for inclusion of the change in the Act.
At provide, formal sector employees with five or more years of service are eligible for Rs 10 lakh tax-free gratuity after leaving job or at time of superannuation.
A senior govt respectable had earlier said that the federal government needs to offer tax-free gratuity of Rs 20 lakh to organised sector employees at par with the central govt.
The Payment of Gratuity Act, 1972, used to be enacted to offer for gratuity fee to workers engaged in factories, mines, oilfields, plantations, ports, railway firms, retail outlets or other institutions.
The regulation is applicable to workers, who have finished at least five years of continuing service in an establishment that has 10 or more individuals.
The modification can even permit the central govt to inform the maternity go away duration for "female employees as deemed to be in continuous service in place of existing twelve weeks".
The proposal comes against the backdrop of the Maternity Benefit (Amendment) Act, 2017 improving the utmost maternity go away duration to 26 weeks.
The Rajya Sabha handed the bill, which used to be licensed by way of the Lok Sabha closing week, on March 15. Besides enabling the central govt to mend the ceiling of tax loose gratuity, the bill can even empower it to mend the duration of maternity go away via executive order.
It also notifies the duration of maternity go away as part of steady service and proposes to empower the central govt to inform the gratuity ceiling now and again without amending the regulation.
Rajya Sabha Chairman M Venkaiah Naidu said in the Upper House that he had met leaders of various parties in the morning and it used to be made up our minds that the House would take up the crucial Payment of Gratuity (Amendment) Bill because it used to be of significance to the workers.
Labour Minister Santosh Kumar Gangwar then moved the bill for attention and passage. It used to be handed by way of a voice vote and not using a debate.
The labour ministry later said in a observation that the Bill also envisages amending the provisions in relation to calculation of continuing service for the aim of gratuity in case of female workers who're on maternity go away from "twelve weeks" to such duration as is also notified by way of the central govt now and again.
Prime Minister Narendra Modi tweeted: "A significant pro-people measure passed in Parliament. Will benefit lakhs of Indians."
After implementation of the seventh Central Pay Commission, the ceiling of tax loose gratuity quantity for central govt workers used to be increased from Rs 10 lakh to Rs 20 lakh. The unions were hard for inclusion of the change in the Act.
At provide, formal sector employees with five or more years of service are eligible for Rs 10 lakh tax-free gratuity after leaving job or at time of superannuation.
A senior govt respectable had earlier said that the federal government needs to offer tax-free gratuity of Rs 20 lakh to organised sector employees at par with the central govt.
The Payment of Gratuity Act, 1972, used to be enacted to offer for gratuity fee to workers engaged in factories, mines, oilfields, plantations, ports, railway firms, retail outlets or other institutions.
The regulation is applicable to workers, who have finished at least five years of continuing service in an establishment that has 10 or more individuals.
The modification can even permit the central govt to inform the maternity go away duration for "female employees as deemed to be in continuous service in place of existing twelve weeks".
The proposal comes against the backdrop of the Maternity Benefit (Amendment) Act, 2017 improving the utmost maternity go away duration to 26 weeks.
Tax-free gratuity limit doubled, Parliament passes bill
![Tax-free gratuity limit doubled, Parliament passes bill]()
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March 23, 2018
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