Through this post, you will aware about the new provisions of The Payment of Gratuity (Amendment) Bill 2017 in which Union Cabinet approves Double Tax Free Gratuity For Government and Private Sector Employees. Key Details are :-
- Union cabinet on 12.09.2017 approved two worker-friendly proposals.
- One entails extra compensation to central government employees and other proposes to extend gratuity payment norms, available at present to government employees, to staffers in the private sector companies as well as public sector firms.
- As per new provisions the gratuity withdrawal limits for staff in private companies and public-sector units have been doubled to Rs 20 lakh.
- This will only come into effect once the Payment of Gratuity Act is amended. The cabinet on 12.09.2017 approved the introduction of the amendment bill in Parliament.
- The cabinet also approved an increase in the dearness allowance (DA) and dearness relief for over 11 million central government employees and pensioners.
- The gratuity decision will “increase the maximum limit of gratuity of employees in the private sector, and in public sector undertakings/autonomous organizations under government who are not covered under the Central Civil Services (Pension) Rules.
- It is not clear whether the cabinet approved any change to the gratuity payment tenure rules. Currently, a worker with at least five years of continuous service is eligible to get gratuity.
- The 1% increase in dearness allowance to central government staff and dearness relief to pensioners is with effect from 1 July.
- In another decision, the cabinet committee on economic affairs (CCEA) approved setting up of a Rs 10,881-crore Dairy Processing and Infrastructure Development Fund. It was initially announced in the 2017 Union budget.