Union Budget 2019: Piyush Goyal Says, Gratuity Limit Increased To 30 Lakh Rupees

Union Budget 2019: Piyush Goyal Says, Gratuity Limit Increased To 30 Lakh Rupees

Union Budget 2019: Piyush Goyal Says, Gratuity Limit Increased To 30 Lakh Rupees 

New Delhi: On Friday, the Union Minister, Piyush Goyal had proposed to increase the gratuity limit to Rs. 30 lakh. While presenting the Union Budget 2019-2020 in the Parliament, Mr Goyal said that the gratuity limit has been increased from Rs. 10 lakh to Rs. 30 lakh. The additional Rs. 10 lakh in gratuity comes on the back of a raise of the same magnitude in gratuity by the government last year. This step will allow employers to pay higher tax free gratuity to their employees who have worked for them for more five years.

 

In March last year, the government had effected the double limit of tax-free gratuity in the private sector.

An employees who has completed at least five years of continuous service in an establishment of 10 or more persons, falls under the Payment of Gratuity Act, 1972.