7th Pay Commission: Congratulations, Modi government just increased gratuity limit to Rs 20 lakh from Rs 10 lakh

The employees' unions have also demanded removal of two conditions--having at least 10 employees in an establishment and minimum five years of service for payment of gratuity.

In a positive development, the Central government has decided to increase the gratuity payment limit from the existing Rs 10 lakh to Rs 20 lakh. The Seventh Pay Commission panel had recommended the same in its report to the government.

A meeting between the Labour Ministry and representatives from central trade unions took place on February 23 in which the decision was taken.

The employees' unions have also demanded removal of conditions on having at least 10 employees in an establishment and minimum five years of service for payment of gratuity.