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.
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.