Gratuity limit for employees increased from 10 lakh to Rs 20 lakh

Gratuity limit for employees increased from 10 lakh to Rs 20 lakh

Union Minister Piyush Goyal on Friday said the government has increased the the gratuity limit to Rs. 20 lakh. "The ceiling of payment of gratuity has been enhanced from Rs. 10 lakh to Rs. 20 lakh. During the last five years the minimum wages of labourers of the all categories have been increased by 42 per cent, which is the highest ever," read Mr Goyal's speech for interim budget 2019-20. The government had in Budget 2018-19 increased the gratuity limit by Rs. 10 lakh to Rs. Rs. 20 lakh.

The Payment of Gratuity Act, 1972 is applicable to employees who have completed at least five years of continuous service in an establishment of 10 or more persons.