Building a Wider
Horizon With Labour
Recently, the Ministry of Labour and representative of state governments, employees and employers agreed to increase the gratuity withdrawal limit to Rs.20 lakh from the current ceiling of Rs.10 lakh. The tax exemption limit on gratuity is also set to increase to Rs.20 lakh. Mint had earlier reported that a labour ministry spokesperson had said on 23 February that all the stakeholders-states, Centre, trade unions and industry representatives-were in agreement over enhancing the gratuity ceiling from Rs.10 lakh to Rs.20 lakh. Once this gets implemented, employees will have access to a larger amount of tax-free gratuity. Here is how the math works.
