7th Pay Commission: Very good news for CG employees on gratuity
New Delhi, Feb 01: Although it may not have been the exact announcement Central Government may have expected on the 7th Pay Commission, the Budget 2019 sure has brought some amount of joy.
There was some good news on the national pension scheme and provident funds. The government today announced that the gratuity payment limit has been increased from Rs 10 lakh to Rs 30 lakh. This announcement is good news for the CG employees.
Piyush Goyal said that the pension has been increased from Rs 3,500 to Rs 7,000. The gratuity payment limit has also been increased from Rs 10 lakh to Rs 30 lakh he said.
Those employees covered under the Payment of Gratuity Act 1972 will be entitled for higher amount of gratuity. This would be at par with those in the government sector.
However the best news that some employees got was with regard to income tax. The government said that individuals with income up to Rs 5 lakh will not have to pay any income tax: FM. pay any income tax.
So for now for those CG employees, awaiting good news on the 7th Pay Commission, they would need to be content with the announcements made today.