Budget 2019: Gratuity limit increased from Rs 10 lakh to 30 lakh

New Delhi, Feb 01: Union Minister Piyush Goyal has announced the raising for gratuity limit from Rs 10 lakh to Rs 30 lakh. The additional Rs. 10 lakh in gratuity comes on the back of a raise of the same magnitude in gratuity by the government last year.

Our commitment to promote renewable energy is reflected in our initiative to set up International Solar Alliance; installed solar generation capacity has increased 10 times in last five years; lakhs of new jobs being created by the sector", says FM Piyush Goyal in his Budget Speech.

Goyal announced hiking of tax free gratuity to Rs 30 lakh from existing Rs 20 lakh for employees having service of more than five years.

Piyush Goyal also unveiled Mega Pension Yojana to provide assured monthly pension of Rs 3,000 per month, with a contribution of Rs 100 per month, for workers in the unorganized sector after 60 years of age.

Gratuity is money paid by an employer to an employees who complete 5 years or more with a company. The Payment of Gratuity Act, 1972 is applicable to employees who have completed at least five years of continuous service in an establishment of 10 or more persons.