(DNA)
Payment of Gratuity (Amendment) Bill, 2017, which will make formal sector workers eligible for tax-free gratuity up to Rs 20 lakh, is likely to be introduced in the forthcoming budget session. According to a labour ministry source, the government wants to increase the limit of tax-free gratuity from Rs 10 lakh to Rs 20 lakh for workers in the organised sector.
Sources told Zee Business that once the bill is passed by the Parliament, the government can increase the quantum of tax free gratuity through a notification. Currently, workers in the organised sector with five or more years of service are eligible for Rs 10 lakh tax-free gratuity after leaving employment or at the time of superannuation. The bill was introduced in the Lok Sabha by labour minister Santosh Kumar Gangwar during the winter session of Parliament in December 2017.
