Hi All, Is there any limit on gratuity payment?? any new notification, kindly share please.
As per Indian Gratuity act, on gratuity ac t is mention, payment it is not more then 3 lakhs & fifty thousand, but when we check online, It shows 20 lakhs, & in Jan 2024 it increase up to 25 lakhs. Please provide shed light on this topic
From India, Chhindw%u0101ra
As per Indian Gratuity act, on gratuity ac t is mention, payment it is not more then 3 lakhs & fifty thousand, but when we check online, It shows 20 lakhs, & in Jan 2024 it increase up to 25 lakhs. Please provide shed light on this topic
From India, Chhindw%u0101ra
The maximum amount of gratuity which will be exempted from tax is Rs 20 lakhs. This is the maximum amount of employer that any employer is LIABLE to pay as per law, and not the maximum amount of gratuity that an employer CAN pay. Therefore, if the employer is ready to pay more than Rs 20 lakhs, he can pay.
There is no increase made to maximum amount payable as per Payment of Gratuity Act. At the same time, following 7th Pay Commission recommendations, the gratuity payable to government employees has been revised from 20 lakhs to Rs 25 lakhs. But this doesn't mean that employees not covered by Pay Commission recommendations, ie, private establishments, should also get the benefit of it.
From India, Kannur
4244There is no increase made to maximum amount payable as per Payment of Gratuity Act. At the same time, following 7th Pay Commission recommendations, the gratuity payable to government employees has been revised from 20 lakhs to Rs 25 lakhs. But this doesn't mean that employees not covered by Pay Commission recommendations, ie, private establishments, should also get the benefit of it.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
EPS - Wage Limit increase_01.09. 2014.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx