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  4. 7th Pay Commission: Good News! Centre increases gratuity from Rs 10 lakh to Rs 20 lakh; these govt employees to get benefited

7th Pay Commission: Good News! Centre increases gratuity from Rs 10 lakh to Rs 20 lakh; these govt employees to get benefited

7th Pay Commission: Central govt employees get another good news as Government has approved the gratuity under the recommendations of the 7th Pay Commission. According to reports, the centre has increased gratuity from Rs 10 lakh to Rs 20 lakh. Earlier, Centre approved DA and HRA hike for the central govt employee.

India TV Business Desk India TV Business Desk
New Delhi Updated on: July 27, 2019 14:47 IST
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7th Pay Commission News: Good News! Centre makes major changes in gratuity, these govt employees to get benefited

7th Pay Commission: Central govt employees received another good news as the Centre has approved the gratuity for under the 7th Pay Commission recommendations. According to reports, the Centre has increased gratuity from Rs 10 lakh to Rs 20 lakh. Earlier, govt had made changes in DA and HRA hike for the central govt employee. 

Apart from this, the Government has amended the payment of employees of Formal Sector under the gratuity bill, says report. The Center has increased the tax-free gratuity limit from 10 lakh to 20 lakhs. In this case, it will be a booster for the central employees, who hopes to get a huge amount on retirement.

ALSO READ: 7th Pay Commission: Centre likely to hike central govt employees HRA, after DA; check details

These employees will not only receive gratuity benefit but also they will save tax on a large scale. Let us tell you that those employees are who works according to the normal shift and gets daily wages. These employees are from the organized sector and they support their country's GNP (Gross National Product) and GDP (Gross Domestic Product). They pay taxes and the government monitors this thing.

What are the benefits of Gratuity under the 7th Pay Commission? 

Central employees get a monetary benefit of gratuity. However, this benefit is not available every month. The provisions and rules of gratuity for government and private sector employees fall under the Payment of Gratuity Act, 1972. Gratuity benefits are available for an employee who gets retired or have worked minimum of 4 years, 10 months, 11 days at one company and on sickness/divisiveness or illness during their service tenure.

ALSO READ:7th Pay Commission allowance: These govt employees to get additional Rs 5,000 to Rs 20,000 soon; details inside

ALSO READ: 7th Pay Commission: Central Government employees must know these key facts on pension; check details

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