ARTICLE · 18 MAY 2018

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Accordingly, the central government has fixed the total period of maternity leave in the case of a female employee to 26 weeks.

IndiaEmployment and HR

Brajeswar Pandey

Tax-free gratuity ceiling raised to Rs. 20 lakh for private sector employees:

The Centre has recently approved an amendment bill that seeks to increase the maximum limit of gratuity for private and public sector employees from Rs 10 Lakhs to Rs 20 Lakhs. This amendment effective from 29th March 2018, vide notification S.O 1420 (E) dated 29.03.2018 increased the limit of amount of gratuity payable to an employee under sub-section (3) of section 4 of the Payment of Gratuity Act, 1972 (39 of 1972) from the existing limit of Rs. 10 Lakhs to Rs. 20 Lakhs.

The notification follows changes in the Payment of Gratuity Act which had empowered the government to fix the ceiling of the retirement benefit through an executive order.

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