Source | https://timesofindia.indiatimes.com
At present formal sector workers with five or more years of service are eligible for Rs 10 lakh tax free gratuity after leaving job or at time of superannuation.
” The Payment of Gratuity (Amendment) Bill+ , 2017 will be passed in the Budgetsession of Parliament, expected to begin by the end of this month,” a source said.
The source further said, “The government wants to provide tax free gratuity of Rs 20 lakh to organised sector workers at par with Central government”.
The bill was introduced in the Lok Sabha in winter session of Parliament last month. Once the bill is passed by Parliament, the government will not be required to go to it again for deciding the quantum of tax free gratuity.
The bill seeks to allow the government to notify the period of maternity leave and gratuity that can be availed by employees under a central law.
The Payment of Gratuity (Amendment) Bill, 2017 was introduced by labour minister Santosh Kumar Gangwar in the Lok Sabha on December 18, 2017.
The Payment of Gratuity Act, 1972, was enacted to provide for gratuity payment to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments.
The law is applicable to employees, who have completed at least five years of continuous service in an establishment that has ten or more persons.
The amendment will also allow the central government to notify the maternity leave period for “female employees as deemed to be in continuous service in place of existing twelve weeks”.