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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11 responses to “Govt. increases maximum gratuity limit to Rs. 20 Lakhs”

  1. 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.

  2. kajal says:

    Is this limit increased for all(Whether or not covered under gratuity act) or for only those who are covered under gratuity act.

  3. 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

    • 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

  4. 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.

  5. 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.

  6. 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??

  7. 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?

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