Month: March 2018

Categories
Gratuity

Clarifications on Gratuity Act Amendment 2018

Please note the following points regarding the recent Amendment to the Gratuity Act

  1. Employee leaving an organization on or after 29th March 2018 shall be eligible for increased benefit of Gratuity of Rupees 20 lakhs. Any employee who was eligible for gratuity before this date will be entitled to the old benefit of Rupees 10 lakhs.
  2. The Maternity Act was amended about a year back on 28th March 2017 by which women were entitled to avail 12 weeks of paid maternity leave. However corresponding amendment was not made to the Gratuity Act.  Due to this, women who were eligible for gratuity between these dates will be eligible for 6 weeks maternity leave in Gratuity and not 12 weeks. Leave availed in excess of 6 weeks shall not be considered as part of service.

 

Categories
80C Deductions House Rent Allowance (HRA) India Payroll Payroll

Income Tax Calculator for FY 2018-19 [AY 2019-20] – Excel Download, Automated Salary Tax Calculator along + 15 other Features

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Categories
Gratuity

Tax-free gratuity ceiling raised to Rs 20 Lakh

Much awaited notifications under the Payment of Gratuity Act has been issued. Tax-free gratuity ceiling raised to Rs 20 Lakh for private sector employees. download notifications  copy.

GRATUITY INC 20 LACS NOTIFICATION

Vide Gazette Notification no. S/O 1419 (E) dated 29th March 2018 changes vide the Payment of Gratuity (Amendment) Act, 2018 (12 of 2018) shall be effective from 29thMarch 2018

Vide Gazette Notification no. S/O 1420 (E) dated 29th March 2018 the amount of gratuity payable to an employee shall not exceed twenty lac rupees (from existing ten lac rupees) as per section 4(3) of The Payment of Gratuity Act 1972

Vide Gazette Notification no. S/O 1421 (E) dated 29th March 2018 that the total period of maternity leave in the case of a female employee shall not exceed twenty-six weeks( from existing twelve weeks)  as per clause (iv) of the Explanation to subsection (2) of Section 2A of The Payment of Gratuity Act, 1972.

Copy of Gazette Notifications is being attached herewith for ready reference

Categories
Minimum Wage

Payment of Wages Act Notification – Effective 28th August – 2017

“The payment of Wages Act applies to all the employees those who were drawing wages less than Rs. 18,000/- per month. But as per the latest notification received from the Government of India, Ministry of Labour and Employment, in exercise of the powers conferred by sub-section (6) of Section 1 of the Payment of Wages Act, the wages limit for the coverage has been enhanced to Rs. 24,000/- per month.”

Amendment in Payment of Wages Act

The Act regulates the payment of wages to certain classes of employed persons, and contains provisions in relation to, inter alia, the responsibility for payment of wages, fixing of wage-periods, time of payment of wages, and maintenance of registers and records.

 

In short, there is no impact on minimum wage, only the eligibility of the employees wage ceiling has been increased  from Rs.18,000/- to Rs.24,000/- under Payment of Wages Act.

Categories
Minimum Wage

Latest Delhi Minimum Wage, Delhi

Revised minimum wage in Delhi. Get revised minimum wage rates in India and its Union Territories.. 

Categories
Maternity Act

Maternity Amendment Act_Creche Facility

Dear All, Please find below link to download the clarification by the Labour Department wherein through a response to an RTI they have clarified that the cost of the Creche facility is to be borne by the Employer.

Categories
Gratuity

Payment of Gratuity (Amendment) Bill, 2018 passed by Parliament

NEW DELHI: Parliament on Thursday passed Payment of Gratuity(Amendment) Bill 2017 paving the way for doubling the limit of tax free gratuity to Rs 20 lakh and empowering the government to fix the ceiling of the retirement benefit through an executive order.

 

The Rajya Sabha passed the bill, which was approved by the Lok Sabha last week, on March 15. Besides enabling the central government to fix the ceiling of tax free gratuity, the bill will also empower it to fix the period of maternity leave through executive order.

HIGHLIGHTS

  • Parliament has passed Payment of Gratuity(Amendment) Bill 2017 paving the way for doubling the limit of tax free gratuity to Rs 20 lakh
  • The Bill also notifies period of maternity leave as part of continuous service

 

It also notifies the period of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity ceiling from time to time without amending the law.

Rajya Sabha Chairman M Venkaiah Naidu said in the Upper House that he had met leaders of various parties in the morning and it was decided that the House would take up the crucial Payment of Gratuity (Amendment) Bill as it was of importance to the employees.

Labour Minister Santosh Kumar Gangwar then moved the bill for consideration and passage. It was passed by a voice vote without a debate.

The labour ministry later said in a statement that the Bill also envisages amending the provisions relating to calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave from “twelve weeks” to such period as may be notified by the central government from time to time.

Prime Minister Narendra Modi tweeted: “A significant pro-people measure passed in Parliament. Will benefit lakhs of Indians.”

After implementation of the 7th Central Pay Commission, the ceiling of tax free gratuity amount for central government employees was increased from Rs 10 lakh to Rs 20 lakh. The unions have been demanding for inclusion of the change in the Act.

At present, formal sector workers with five or more years of service are eligible for Rs 10 lakh tax-free gratuity after leaving job or at time of superannuation.

Continue reading “Payment of Gratuity (Amendment) Bill, 2018 passed by Parliament”