7th Pay Commission brings good news for government employees and promises the same for those in the private sector.
The 7th Pay Commission has recently increased the gratuity exemption limit to Rs. 20 Lacs (earlier the limit was Rs. 10 Lac) for all their government employees. Furthermore, the Ministry of Labour and Employment is in discussion to raise the gratuity limit for non-government employees to Rs. 20 Lacs, on par with government employees. The impact of this new initiative would reportedly be enhanced tax saving for the employees.
After that, employees in the organized sector can now be allowed to withdraw up to 20 lakh from their gratuity fund. The decision was taken at a meeting between the Ministry of Labor and representatives of the central trade unions on 23 February.