Govt. increases maximum gratuity limit to Rs. 20 Lakhs

  • | Corporate Law - Notifications- Notifications/Circulars
  • 29 Mar 2018
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Government 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 from the existing limit of Rs. 10 Lakh to Rs. 20 Lakhs.

MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 29th March, 2018

S.O. 1420 (E).—In exercise of the powers conferred by sub-section (3) of section 4 of the Payment of Gratuity Act, 1972 (39 of 1972), the Central Government hereby specifies that the amount of gratuity payable to an employee under the said Act shall not exceed twenty lakh rupees.

[No. S-42012/02/2016-SS-II]
MANISH GUPTA, Jt. Secy.

List of Recent Gratuity Related Notification

Title Notification No. Date
Payment of Gratuity (Amendment) Act, 2018 applicable from 29.03.2018 Notification No. S.O. 1419(E). 29/03/2018
Govt. increases maximum gratuity limit to Rs. 20 Lakhs Notification No. S.O. 1420 (E). 29/03/2018
Govt notifies maximum maternity leave of 26 weeks for Gratuity Notification No. S.O. 1421 (E) 29/03/2018
President assents Payment of Gratuity (Amendment) Act, 2018 NO. 12 OF 2018 29/03/2018
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20 Comments

  1. SUDHISH Rai says:

    Rspctd Sir,
    I was a bank officer & hd been resigned jan 2019 . I hd completed 7year4month service, m eligible for Gratuity but according to bank 10 year required to get gratuity. Plz Send me govt. Notification copy in which mentioned that 5 year Regular service required to eligible for Gratuity.
    Plz help me.
    Thanx
    Regards
    Sudhish Rai.
    Sudhishrai4056@gmail.com
    +91 810 9060 863.

      Reply
  2. K R SADHU says:

    I am retired on 31/12/2017 from Gujarat industrial Development Corporation (Government of Gujarat Undertaking), please let me know that can I am eligible for the increase of Gratuity limit from 10.0 lacs to 20.0 lacs ,as tax free.

      Reply
  3. K R SADHU says:

    I am retired on 31/12/2017 from Gujarat industrial Development Corporation (Government of Gujarat Undertaking), please let me know that can I am eligible for the increase of Gratuity limit from 10.0 lacs to 20.0 lacs

      Reply
  4. Ajit says:

    I retired on 31 Jan 2017 from NTPC Ltd, a CPSU and was paid gratuity of Rs. 10 Lakh and no income tax was deducted.
    Subsequently in June 2018 I was paid an additional Rs. 10 Lakh but income tax was deducted from this payment.
    Kindly inform whether I am eligible for exemption from income tax on the enhanced payment of Rs. 10 Lakh recieved in June 2018.

      Reply
  5. Kirit Kumar Panalal Shah says:

    I was retiRed on 31072012 on superannuation from Indian Overseas Bank after serving 36 years Total salary for calculation of gratuity Rs 60559.66 eligible for gratuity of Rs 1257777.55 only paid Rs 1000000 claiming difference of Rs 257777.55 Please guide me bank refusing to pay claim amount saying that maximum payable gratuity as per act is Rs.1000000 on my date of Retirement please advise and guide

      Reply
  7. C.P.AGARWAL says:

    I have worked with a public limited company and retired in May 2016 ,however company extended my tenure for another two years and finally retired and relived on 31st august 2018. I had joined this group of company in May 1981, can you please calculate my amount of gratuity ,keeping in view the amendments in Gratuity Act 1972 , dated 29th March 2018 regarding enhancement of its limit from 10 ;lacs to 20 Lacs.

      Reply
  9. C T BHAMBHANI says:

    I am retired on 31/10/2017 from Gujarat industrial Development Corporation (Government of Gujarat Undertaking), please let me know that can I am eligible for the increase of Gratuity limit from 10.0 lacs to 20.0 lacs

      Reply
    1. A.K.AGGARWAL says:

      I RETIRED ON 30.11.17 FROM GOVT OF INDIA UNDERTAKING.
      I HAVE RECEIVED 20 LAKH GRATUITY
      10 LAKH TAX FREE AND 10 LAKH TAXABLE

      IS IT CORRECT

        Reply
  10. Ramanand Jha says:

    My father was expired in Nov 2017 & he was suppose to retire from ONGC on 28.2.2018. My Mother received gratuity of Rs 10 lakh tax free + 10 lakh with 33% tax deduction. The gazette notification s.o. 1419(E) & 1420(E) passed on 29.03.2018. please do inform whether I can this tax refund.
    With due regards.

      Reply
  11. M. Rajesh says:

    I am retired on 30.6.2017 as private sector employee. As per notification the exemption limit of Gratuity is increased to 20 lakh. let me know I am eligible for the enhanced limit of Rs. 20 lakhs as tax free.

      Reply
  12. Dhruba Mukhopadhyay says:

    I left my job with Gratuity INR 15 lakh on 30th Aug 2017 from Private Sector. Is it tax free in FULL in PY 2017-18 with AY 2018-19??

      Reply
  13. Dinesh Goswami says:

    I am a retired executive from Oil PSU. I retired in June,2017 and entitled for new pay scale which is effective from 01/01/2017.
    Please let me know is the increased gratuity amount of Rs.10 lakh is taxable?

      Reply

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