Gratuity- Post Amendment- Learning
Gratuity – New Limit, Eligibility, Formula, Taxation and Calculator
The Parliament passed the Payment of Gratuity (Amendment) Bill. This will increase the limit amount to Rs.20 Lakh from the existing Rs.10 Lakh. This is applicable for central govt employees and also private sector employees (organized sectors).
Considering this new Payment of Gratuity (Amendment) Bill, let us see the new rules, eligibility, the formula to calculate, taxation and also the calculator.
Gratuity is nothing but a favorable BONUS given to you by your employer for being loyal to them as an employee for long. Gratuity is a defined benefit plan offered by your employer.
It is a payment made to an employee by the employer either at the time of retirement or when he is leaving the job. It is given to the employee once he has completed at least 5 years of continuous service.
It is mandatory for any employer in the private sector or public sector who has 10 or more employees to pay gratuity to all employees
to Know more click on the Link below
https://drive.google.com/file/d/1jkB4G50exFEnnkmmjWvliW1O6LxDemgB/view?usp=sharing
