Due to incorrect schedule in original ITR gratuity tax deduction under Section 43B denied; ITAT Chennai g ...More

Due to incorrect schedule in original ITR gratuity tax deduction under Section 43B denied; ITAT Chennai gives relief and says a genuine deduction cannot be denied merely because it was reported under an incorrect schedule in the ITR ...Less

The Unified Pension Scheme (UPS) has received limited response from central government employees, with on ...More

The Unified Pension Scheme (UPS) has received limited response from central government employees, with only 1.18 lakh workers opting for it by July 19, accounting for 4.3% of NPS subscribers. Introduced in April 2025 after demands for assured pensions, UPS offers a 50% pension guarantee, gratuity benefits and minimum monthly payout of ₹10,000. The government extended the opt-in deadline to November 30, 2025. ...Less

Gratuity, pension forfeited but only leave encashment paid after nine years delay without interest; retir ...More

Gratuity, pension forfeited but only leave encashment paid after nine years delay without interest; retired employee wins case in Delhi High Court as court directs employer to pay 6% interest on leave encashment. Know how this employee's family won case in Delhi High Court. ...Less

Finance Minister Nirmala Sitharaman confirmed no changes are planned for the Unified Pension Scheme. This ...More

Finance Minister Nirmala Sitharaman confirmed no changes are planned for the Unified Pension Scheme. This scheme offers assured monthly payouts to Central government employees after retirement. The Unified Pension Scheme was introduced as an option under the National Pension System. It aims to provide adequate retirement benefits and pension predictability for employees. The government has also extended tax benefits and a one-way switch facility to UPS. ...Less

West Bengal's seventh pay commission will revise employee pay and benefits. It aims for pay parity with c ...More

West Bengal's seventh pay commission will revise employee pay and benefits. It aims for pay parity with central government employees and improved service conditions. Annual increments may increase, and retirement benefits will be reviewed for updates. The health scheme will also see revisions with cashless treatment for beneficiaries. The commission will consider implementing revised pay from January 1, 2026. ...Less

The NCLAT dismissed an appeal regarding priority payment of gratuity dues. It upheld an earlier NCLT orde ...More

The NCLAT dismissed an appeal regarding priority payment of gratuity dues. It upheld an earlier NCLT order concerning Duncans Industries' former director. Such dues must be settled according to the company's approved resolution plan. Gratuity is a terminal benefit, not an insolvency resolution process cost. The appellate tribunal found the appeal misconceived and dismissed it. ...Less

The Supreme Court upheld an NCLAT order concerning Grasim Industries. This decision set aside a significa ...More

The Supreme Court upheld an NCLAT order concerning Grasim Industries. This decision set aside a significant penalty previously imposed by the CCI. The fair trade regulator must now rehear the Aditya Birla Group firm's case. The NCLAT found that Grasim was not given a proper opportunity to present arguments. The CCI had imposed the penalty for alleged dominance in the viscose staple fibre market. ...Less

The government has notified the EPS pension 2026 scheme, superseding older plans. Existing pension fund b ...More

The government has notified the EPS pension 2026 scheme, superseding older plans. Existing pension fund benefits are protected under the new scheme. A special drive is underway to dispose of pending labor cases expeditiously. The new scheme maintains the pension calculation formula and contribution rates. Membership eligibility is defined for those joining after June 29, 2026. ...Less

Contractual teachers held as employees by the tax department and on this ground, Rs 9.48 lakh tax demand ...More

Contractual teachers held as employees by the tax department and on this ground, Rs 9.48 lakh tax demand raised; ITAT Cochin rules administrative supervision over timings, attendance and leave does not automatically create an employer-employee relationship. Know what ITAT Cochin said about TDS on salary paid to contractual employees. ...Less

Parliament updates: Govt launched a 3-month drive to clear 16,033 labour disputes, ESIC disbursed ₹5.26 c ...More

Parliament updates: Govt launched a 3-month drive to clear 16,033 labour disputes, ESIC disbursed ₹5.26 crore under ABVKY, approved polymer note trials, and said FPI outflows reflect global trends. ...Less

The Reserve Bank of India has proposed new foreign investment rules. These simplified rules aim to enhanc ...More

The Reserve Bank of India has proposed new foreign investment rules. These simplified rules aim to enhance clarity and reduce complexity. Indian companies may soon list shares on foreign stock exchanges. Foreign investors can also make investments on repatriation or non-repatriation bases. The central bank is seeking public comments on these draft regulations. ...Less

ET Wealth Reader's Query: I am 45, and want to buy a holiday home, or what may be called a second home. I ...More

ET Wealth Reader's Query: I am 45, and want to buy a holiday home, or what may be called a second home. I do not have any major financial commitments apart from my two daughters’ education. I have also been investing through Systematic Investment plans (SIPs) for the past two years. Should I liquidate my gold investments to buy the second home, or would it be better to pledge the gold instead? ...Less

ET Wealth Reader's Query: I will retire in four years. I have Rs 95 lakh in Provident Fund savings and ex ...More

ET Wealth Reader's Query: I will retire in four years. I have Rs 95 lakh in Provident Fund savings and expect Rs 20 lakh as gratuity. I have no liabilities. How to invest this corpus to get a monthly income of Rs 1 lakh? ...Less

Social security coverage in India has expanded from 19 percent to over 64 percent. This now encompasses 9 ...More

Social security coverage in India has expanded from 19 percent to over 64 percent. This now encompasses 94 crore people, a significant increase from a decade ago. The Union Government's efforts have strengthened social security and labor frameworks. Four labor codes replaced 29 existing laws, simplifying worker-centric regulations. ...Less

In a landmark decision, the NCLAT has ruled that former Jet Airways employees are entitled to their full ...More

In a landmark decision, the NCLAT has ruled that former Jet Airways employees are entitled to their full provident fund and gratuity dues, even if separate accounts weren't maintained. Financial creditors' appeals were dismissed, affirming these statutory dues must be paid outside the liquidation estate. While salary claims will follow the IBC's waterfall, this ruling offers significant relief to workers. ...Less

Indian Hotels Company Ltd (IHCL) CEO Puneet Chhatwal saw his remuneration climb to Rs 25 crore in FY26, a ...More

Indian Hotels Company Ltd (IHCL) CEO Puneet Chhatwal saw his remuneration climb to Rs 25 crore in FY26, a nearly 9% jump from the previous year. This increase also widened the pay gap between him and the median employee. His package includes salary, bonuses, benefits, and commission. Shareholders recently approved a revision to his basic salary scale, effective April 1, 2026. ...Less

India's burgeoning talent pool, now the third-largest globally, presents a strategic hiring challenge. Wi ...More

India's burgeoning talent pool, now the third-largest globally, presents a strategic hiring challenge. With over two million professionals in Global Capability Centres, companies face complex compliance hurdles. Utilizing an Employer of Record (EOR) is crucial for foreign firms, managing payroll, taxes, and legal obligations without a local entity. This approach ensures compliance with India's intricate, multi-layered labor laws and tax reforms, especially for early-stage hiring. ...Less

The "Nature of Employment" field in the ITR is more than a routine disclosure. An incorrect selection can ...More

The "Nature of Employment" field in the ITR is more than a routine disclosure. An incorrect selection can affect certain tax benefits, including exemptions on gratuity, commuted pension and leave encashment, as well as deductions for employer contributions to NPS, potentially leading to incorrect tax computation and compliance issues. ...Less

In a significant ruling, the Supreme Court has declared that temporary-status employees, even without for ...More

In a significant ruling, the Supreme Court has declared that temporary-status employees, even without formal regularization, are entitled to pensionary benefits after retirement. This landmark decision, stemming from a case involving postal workers, emphasizes that long service and eligibility under specific rules grant these rights. The court directed authorities to disburse pensions and retiral benefits promptly, asserting that pension is a deferred wage and a constitutional right. ...Less

Tax-free income: Unlock tax savings with these eight income sources exempt from income tax in India. From ...More

Tax-free income: Unlock tax savings with these eight income sources exempt from income tax in India. From agricultural earnings and provident fund withdrawals to gifts from relatives and insurance payouts, understand how to keep more of your money. ...Less

New labour codes and central government rules simplify employee compliance by consolidating 29 fragmented ...More

New labour codes and central government rules simplify employee compliance by consolidating 29 fragmented laws into a unified framework. This brings procedural clarity, electronic filings, and a single registration system, enhancing transparency and formalizing employment. Employees benefit from expanded protections, including gratuity for fixed-term workers and dedicated schemes for gig workers. ...Less

A viral X post contrasted a smooth exit from a global firm with a friend's difficult experience at an Ind ...More

A viral X post contrasted a smooth exit from a global firm with a friend's difficult experience at an Indian employer, sparking debate on salary delays and settlement practices. The comparison highlights perceived inconsistencies in HR processes between multinational corporations and domestic companies, impacting employee trust. ...Less

8th Pay Commission news: Central government employees await the 8th Pay Commission's recommendations, wit ...More

8th Pay Commission news: Central government employees await the 8th Pay Commission's recommendations, with meetings underway. Arrears for top-level employees (Level 15-18) could range from ₹36.44 lakh to over ₹93 lakh for a 20-month delay, depending on the fitment factor. These figures are estimates until the official report is implemented. ...Less

The Supreme Court has ordered the Uttar Pradesh government and the Centre to finalize four ongoing discip ...More

The Supreme Court has ordered the Uttar Pradesh government and the Centre to finalize four ongoing disciplinary actions against former IPS officer Amitabh Thakur. These proceedings must be concluded within six months. Thakur, who was compulsorily retired in 2021, claims these inquiries have been prolonged for a decade. His retiral dues remain unpaid. ...Less

Retired railway employees are urging the 8th Pay Commission to implement one rank one pension. They also ...More

Retired railway employees are urging the 8th Pay Commission to implement one rank one pension. They also demand a revision of basic pay and increments to combat inflation. The association seeks improved allowances, welfare benefits, and retirement provisions. ...Less

The All India Defence Employees’ Federation (AIDEF) has urged the 8th Pay Commission to replace the AICPI ...More

The All India Defence Employees’ Federation (AIDEF) has urged the 8th Pay Commission to replace the AICPI-IW-based inflation measure with a dedicated cost-of-living index for central government employees and pensioners. It argues the revised CPI underestimates rising expenses on food, healthcare, housing and education, leading to inadequate DA, DR, pay revisions and pension protection. ...Less

The Centre has announced significant support for families affected by the Vizag Steel Plant accident. Ex ...More

The Centre has announced significant support for families affected by the Vizag Steel Plant accident. Ex gratia compensation of Rs 25 lakh will be given to each deceased worker's family. Permanent employment will be provided to one family member. Injured workers will receive Rs 10 lakh for severe injuries. The government assures commitment to employee welfare and plant revival. ...Less

India's income tax administration has become increasingly data-driven, with information from TDS/TCS repo ...More

India's income tax administration has become increasingly data-driven, with information from TDS/TCS reporting, SFT filings and other sources being integrated into the Annual Information Statement (AIS) and used to cross-check taxpayer disclosures. In this environment, filing an accurate and complete ITR is essential to avoid refund delays, tax demands, penalties, compliance alerts and notices. ...Less

A retired employee, Mr. Rao, has won a 13-year legal battle for unpaid salary and gratuity. The Andhra Pr ...More

A retired employee, Mr. Rao, has won a 13-year legal battle for unpaid salary and gratuity. The Andhra Pradesh High Court ruled that an employer's lack of funds is not a valid excuse for withholding statutory dues. The court directed the employer to pay the outstanding amount with 10% interest. ...Less

Gratuity payment: Supreme Court said employers can forfeit gratuity payments if the employee was dismisse ...More

Gratuity payment: Supreme Court said employers can forfeit gratuity payments if the employee was dismissed due to moral turpitude reason and it was proved in the company's own disciplinary committee hearing. Earlier based on a 2018 judgement precedent this dismissal for moral turpitude reason had to be proved in a court of law. With this decision, employers can now proceed with the forfeiture of gratuity without waiting for court to decide the cases. ...Less

The Department of Pension and Pensioners' Welfare has issued new guidelines on gratuity for government em ...More

The Department of Pension and Pensioners' Welfare has issued new guidelines on gratuity for government employees re-employed in civil services. The clarification addresses situations where individuals have already received gratuity for military service. It outlines conditions under which a separate gratuity for re-employment will not be granted. ...Less

Gratuity calculation in CTC: Gratuity is paid when an employee leaves the organisation after completing a ...More

Gratuity calculation in CTC: Gratuity is paid when an employee leaves the organisation after completing a minimum service period of five years. When an employee joins a new company, the gratuity is added to the CTC. However, not many are aware how this gratuity amount is calculated in the offer letter. ...Less

The Calcutta High Court has ruled that employers can deduct Rs 10 lakh from a retired employee's gratuity ...More

The Calcutta High Court has ruled that employers can deduct Rs 10 lakh from a retired employee's gratuity. This decision follows losses incurred by the company due to the employee's actions during his service. The court upheld the company's right to recover pecuniary losses. Disciplinary proceedings confirmed the employee's misconduct. ...Less

To calculate the gratuity amount you are eligible to receive, the last drawn salary will be considered. T ...More

To calculate the gratuity amount you are eligible to receive, the last drawn salary will be considered. The last drawn salary includes basic salary, dearness allowance, commission received on sales. ...Less

New Labour Codes are set to increase gratuity payouts for many employees by redefining 'wage' to include ...More

New Labour Codes are set to increase gratuity payouts for many employees by redefining 'wage' to include allowances exceeding 50% of total payment. This change prevents employers from artificially lowering basic pay to reduce gratuity. Eligibility for fixed-term and contract workers has also been reduced to one year. ...Less

There are certain rules that make an employee eligible to receive gratuity before the age of retirement/s ...More

There are certain rules that make an employee eligible to receive gratuity before the age of retirement/superannuation or resignation of an employee. However, in the case of the death of an employee, the five-year rule is not applicable. Read on to know when is gratuity payable to an employee by the employer. ...Less

Starting November 21, 2025, gratuity calculations are changing. Fixed-term employees can now receive grat ...More

Starting November 21, 2025, gratuity calculations are changing. Fixed-term employees can now receive gratuity after one year. Wages will include more components, potentially increasing gratuity payouts. Permanent employees still require five years of service. This shift aims to redefine statutory benefits for many workers across India. ...Less

A retired state employee successfully challenged a Rs 2.2 lakh penalty imposed for claiming a higher grat ...More

A retired state employee successfully challenged a Rs 2.2 lakh penalty imposed for claiming a higher gratuity tax exemption. The Income Tax Appellate Tribunal ruled that the employee's claim, though incorrect, was based on a bona fide belief and all facts were disclosed. The tribunal deleted the penalty, citing no misreporting of income and extending immunity benefits. ...Less

New labor codes have sparked interest in gratuity rules, with fixed-term and contract workers now eligibl ...More

New labor codes have sparked interest in gratuity rules, with fixed-term and contract workers now eligible after one year of service. This change, however, does not extend to permanent employees, who still require five years of continuous service to qualify for gratuity benefits. ...Less

A bank employee's gratuity was wrongly withheld after she acted as a guarantor of someone else's loan and ...More

A bank employee's gratuity was wrongly withheld after she acted as a guarantor of someone else's loan and that person defaulted on the loan. The bank argued she was equally liable. However, the Odisha High Court ruled in her favor. The court stated gratuity is a deferred salary and cannot be forfeited. ...Less

Labour Code guidelines: India's new Labour Codes significantly reform social security, particularly gratu ...More

Labour Code guidelines: India's new Labour Codes significantly reform social security, particularly gratuity provisions. Fixed-term and contract employees now qualify for gratuity after just one year of service, a reduction from the previous five years. These changes aim to broaden worker protections and simplify eligibility across various sectors. ...Less

Gratuity payment: Many employees who quit their jobs before five years of service think they cannot recei ...More

Gratuity payment: Many employees who quit their jobs before five years of service think they cannot receive a gratuity. However, even if they quit after working this long, they can still be eligible for gratuity. Know how long an employee should work before five years to receive gratuity payment. Know the rules to get gratuity before quitting your job. ...Less

Here is a look at what the law states about, who can be nominated in case of gratuity, how the nomination ...More

Here is a look at what the law states about, who can be nominated in case of gratuity, how the nomination must be made and when a nominee will not be entitled to receive the gratuity proceeds. ...Less

Currently, maximum tax-exempt gratuity is Rs 10 lakh. The government has tabled the Payment of Gratuity ( ...More

Currently, maximum tax-exempt gratuity is Rs 10 lakh. The government has tabled the Payment of Gratuity (Amendment) Bill, 2017 to raise the limit to Rs 20 lakh. ...Less

A viral Reddit debate over north American tipping culture took a dramatic turn after one diner claimed a ...More

A viral Reddit debate over north American tipping culture took a dramatic turn after one diner claimed a waitress mocked his 15% gratuity by calling him “Mr Cheap” as he walked away. The customer immediately removed the tip, demanded the manager, and taught the waitress a lesson, reigniting arguments over entitlement and restaurant wages in North America. ...Less

Tax-free gratuity limit for employees: The government has hiked the maximum amount of gratuity that a gov ...More

Tax-free gratuity limit for employees: The government has hiked the maximum amount of gratuity that a government employee can receive to Rs 25 lakh. The new limit is effective from January 1, 2024. However, not many are aware of the tax-exempt limit of gratuity for private sector and government employees. ...Less

As per the Payment of Gratuity Act 1972, an employee can receive gratuity only if he has completed at lea ...More

As per the Payment of Gratuity Act 1972, an employee can receive gratuity only if he has completed at least five years of continuous service with a company. ...Less

As per CTC rules, gratuity is a part of your salary. That means an employee, who leaves before completing ...More

As per CTC rules, gratuity is a part of your salary. That means an employee, who leaves before completing 5 years, is forced to give up a part of his salary. ...Less

DA hike impact: The Center's decision to increase its employees' dearness allowance by 4% to 50% has resu ...More

DA hike impact: The Center's decision to increase its employees' dearness allowance by 4% to 50% has resulted in significant revisions to other allowances, including retirement gratuity, which is a great benefit for government employees. ...Less

Presently, an employee with at least five years of continuous service is eligible to get gratuity, which ...More

Presently, an employee with at least five years of continuous service is eligible to get gratuity, which forms part of the overall salary package. ...Less

Odisha CM Mohan Charan Majhi has increased the gratuity limit for state government employees from Rs 15 l ...More

Odisha CM Mohan Charan Majhi has increased the gratuity limit for state government employees from Rs 15 lakh to Rs 20 lakh, effective from January 1, 2024. This adjustment applies to Death-Cum-Retirement Gratuity (DCRG) and follows requests from various service associations, aligning with recent central government changes. ...Less

UAE end-of-service gratuity calculations are clarified. The payout is based solely on an employee's basic ...More

UAE end-of-service gratuity calculations are clarified. The payout is based solely on an employee's basic salary. However, the total amount received is limited to two years of the employee's overall salary. This includes all allowances and benefits. Workers with less than one year of service receive no gratuity. ...Less

The ceiling of tax-free gratuity stands enhanced to Rs 20 lakh from existing Rs 10 lakh for employee unde ...More

The ceiling of tax-free gratuity stands enhanced to Rs 20 lakh from existing Rs 10 lakh for employee under the Payment of Gratuity Act. ...Less

The Department of Public Enterprises has clarified gratuity rules for Central Public Sector Enterprise em ...More

The Department of Public Enterprises has clarified gratuity rules for Central Public Sector Enterprise employees. A Rs 20 lakh gratuity payment is now mandatory for all CPSEs from March 29, 2018, regardless of their financial capacity. This change follows an amendment to the Payment of Gratuity Act, 1972. Earlier, affordability was a condition for certain employees. ...Less

The Gratuity Amendment Bill is likely to be passed in the forthcoming Budget session, which will make for ...More

The Gratuity Amendment Bill is likely to be passed in the forthcoming Budget session, which will make formal sector workers eligible for tax free Rs 20 lakh gratuity. ...Less

Central government employees under the National Pension System (NPS) now have clarified eligibility for g ...More

Central government employees under the National Pension System (NPS) now have clarified eligibility for gratuity and death gratuity. Gratuity is payable upon completing five years of qualifying service and retiring under specific circumstances. Resignation generally forfeits past service and gratuity, with exceptions for technical resignations or absorption into government-controlled entities. ...Less

Under the Payment of Gratuity Act, an employee is eligible for gratuity on the termination of his employm ...More

Under the Payment of Gratuity Act, an employee is eligible for gratuity on the termination of his employment after he has rendered continuous service for a minimum of five years. Gratuity is equivalent to 15 days of salary for each year an employee has spent in an organisation. ...Less

The amendment will allow govt to enhance the ceiling of tax-free gratuity to Rs 20 lakh from existing Rs ...More

The amendment will allow govt to enhance the ceiling of tax-free gratuity to Rs 20 lakh from existing Rs 10 lakh for employee under the Payment of Gratuity Act. ...Less

Proposed increase in tax free gratuity limit won't benefit bulk of employees immediately. Here's why. ...More

Proposed increase in tax free gratuity limit won't benefit bulk of employees immediately. Here's why. ...Less

Considering inflation and wage increase in the case of private sector employees, the government is of the ...More

Considering inflation and wage increase in the case of private sector employees, the government is of the view that the gratuity entitlement should be revised. ...Less

n response to a petition filed by a former employee of HDFC Bank, the controlling authority in Kerala rul ...More

n response to a petition filed by a former employee of HDFC Bank, the controlling authority in Kerala ruled that the bank must include "personal pay" while calculating the petitioner's gratuity and not just his basic pay. This was because the employer had termed the component as "personal pay", not as a "personal allowance" - personal allowances are excluded while calculating gratuity payment. ...Less

Under current rules, an employee has to work for a company for five continuous years to be eligible for g ...More

Under current rules, an employee has to work for a company for five continuous years to be eligible for gratuity payment. According to reports, there is now a push in govt circles to cut the five-year criterion to a shorter period — between one and three years. ...Less

An employee is eligible to receive gratuity only if he has completed at least five years of continuous se ...More

An employee is eligible to receive gratuity only if he has completed at least five years of continuous service with an organisation without interruption. ...Less

Gratuity paid to government employees is exempt from tax and the tax-free limit for private employees is ...More

Gratuity paid to government employees is exempt from tax and the tax-free limit for private employees is Rs 20 lakh. ...Less

The move is aimed to redress the issue of employees losing gratuity payments if they have not completed t ...More

The move is aimed to redress the issue of employees losing gratuity payments if they have not completed the mandatory ceiling of five years of employment. ...Less

Cos may be asked to create a separate fund for gratuity payments so that savings are not wiped out. ...More

Cos may be asked to create a separate fund for gratuity payments so that savings are not wiped out. ...Less

The Code on Social Security, 2020 expands the wage base for gratuity, potentially increasing payouts, but ...More

The Code on Social Security, 2020 expands the wage base for gratuity, potentially increasing payouts, but tax rules under the Income-tax Act, 1961 and the Income-tax Act, 2025 still rely on basic pay plus DA. With the Payment of Gratuity Act, 1972 now subsumed, this mismatch could make part of the higher gratuity taxable—highlighting the need for alignment between labour and tax laws. ...Less

Besides, the bill to amend the Payment of Gratuity Act also seeks to enable the central government to cha ...More

Besides, the bill to amend the Payment of Gratuity Act also seeks to enable the central government to change the ceiling for tax-free gratuity after factoring in rise in income levels. ...Less

Finance Minister Arun Jaitley said Tuesday the decision to double tax-free gratuity limit to Rs 20 lakh w ...More

Finance Minister Arun Jaitley said Tuesday the decision to double tax-free gratuity limit to Rs 20 lakh will benefit public and private sector employees. ...Less

Central Government employees under the Unified Pension Scheme (UPS) now gain retirement and death gratuit ...More

Central Government employees under the Unified Pension Scheme (UPS) now gain retirement and death gratuity benefits up to Rs 25 lakh, as per the latest rules. This adds to the existing lump-sum payment within UPS, offering a double financial advantage. Read below to know how government employees can benefit from this new development. ...Less

"The bill to amend the Payment of Gratuity Act is likely to be considered and approved by the Union Cabin ...More

"The bill to amend the Payment of Gratuity Act is likely to be considered and approved by the Union Cabinet in its meeting," a source said. ...Less

The latest enhancement of tax exemption limit on gratuity follows a government notification issued on Mar ...More

The latest enhancement of tax exemption limit on gratuity follows a government notification issued on March 29, 2018. ...Less

A bill to raise the ceiling of gratuity for employees to Rs 10 lakh from the current level of Rs 3.5 lakh ...More

A bill to raise the ceiling of gratuity for employees to Rs 10 lakh from the current level of Rs 3.5 lakh was introduced in the Lok Sabha today. ...Less

Private companies in Karnataka must now partner with insurance firms and pay an annual premium towards gr ...More

Private companies in Karnataka must now partner with insurance firms and pay an annual premium towards gratuity obligations under the Karnataka Compulsory Gratuity Insurance Policy Rules, 2024. The regulation applies to companies with more than 10 employees and requires registration with the controlling authority under the Labour department. This regulation mandates compulsory insurance for gratuity payments as per the Payment of Gratuity Act, 1972. ...Less

The notification follows changes in the Payment of Gratuity Act which had empowered the government to fix ...More

The notification follows changes in the Payment of Gratuity Act which had empowered the government to fix the ceiling of the retirement benefit through an executive order. ...Less

A retired teacher in Pune, denied her gratuity after 25 years of service, sought intervention from the Bo ...More

A retired teacher in Pune, denied her gratuity after 25 years of service, sought intervention from the Bombay High Court. The court, referencing the Payment of Gratuity Act and a Supreme Court precedent, mandated immediate release of her gratuity with 10% annual interest for the delay. The court also directed expedited processing of her pension papers. ...Less

The gratuity limit for private sector is expected to be raised to Rs 20 lakh in line with that in the gov ...More

The gratuity limit for private sector is expected to be raised to Rs 20 lakh in line with that in the government sector. ...Less

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The Rajya Sabha was informed that service rendered by an employee in an autonomous body will be considere ...More

The Rajya Sabha was informed that service rendered by an employee in an autonomous body will be considered for gratuity in the central government, according to the Department of Pension and Pensioners' Welfare. This applies to employees with National Pension System (NPS) who resign with permission to join the government. The All India NPS Employees Federation has welcomed this move. ...Less

Any death-cum-retirement gratuity received by an employee in accordance with the prescribed scheme/rules, ...More

Any death-cum-retirement gratuity received by an employee in accordance with the prescribed scheme/rules, is not taxable. Investing in MIP, fixed deposits or FMPs? ...Less

Dearness allowance hike: The EPFO has opted to keep in "abeyance" the retirement and death gratuity incre ...More

Dearness allowance hike: The EPFO has opted to keep in "abeyance" the retirement and death gratuity increase for workers, which is a blow to those employed by the government and organised sector. In March 2024, the Central government raised the Dearness Relief (DR) and Dearness Allowance (DA) by 4%. ...Less

IRDA has allowed state-owned non-life insurance companies to provide for their increased gratuity liabili ...More

IRDA has allowed state-owned non-life insurance companies to provide for their increased gratuity liability in instalments. This ...Less

Our expert offers tips on various tax-related issues in this weekly column. ...More

Our expert offers tips on various tax-related issues in this weekly column. ...Less

Govt to notify the period of maternity leave and gratuity that can be availed by employees under a centra ...More

Govt to notify the period of maternity leave and gratuity that can be availed by employees under a central law ...Less

ITR Filing 2026-27: Salaried employees can claim tax exemption on leave encashment at retirement. While g ...More

ITR Filing 2026-27: Salaried employees can claim tax exemption on leave encashment at retirement. While government employees enjoy full exemption, private sector employees have a limit of Rs 25 lakh, subject to specific calculations based on earned leave and salary. This income is reported under 'Income from Salary' in the ITR. ...Less

The government today raised income tax exemption limit on gratuity from Rs 3.5 lakh to Rs 10 lakh, with e ...More

The government today raised income tax exemption limit on gratuity from Rs 3.5 lakh to Rs 10 lakh, with effect from May 24. LIC's Jeevan Surabhi | Invest early, create wealth ...Less

As of November 21, 2025, the landscape of employee benefits has shifted dramatically with the new labour ...More

As of November 21, 2025, the landscape of employee benefits has shifted dramatically with the new labour codes. Fixed-term workers will now be entitled to gratuity after a single year of service, a stark contrast to the five-year waiting period faced by their permanent counterparts. This change is designed to level the playing field and enhance compensation for fixed-term roles. ...Less

The maximum limit amount of gratuity under the Payment of Gratuity Act, 1972 has been enhanced from Rs 10 ...More

The maximum limit amount of gratuity under the Payment of Gratuity Act, 1972 has been enhanced from Rs 10 lakh to Rs 20 lakh vide notification dated 29 March, 2018. ...Less

It is a defined monetary benefit plan where no contributions are made by the employee. The employer pays ...More

It is a defined monetary benefit plan where no contributions are made by the employee. The employer pays this to employee if he has worked for at least 5 years. ...Less

The standard five-year service rule isn't absolute when it comes to qualifying for gratuity. Read on to f ...More

The standard five-year service rule isn't absolute when it comes to qualifying for gratuity. Read on to find out which situations or nature of work may qualify you earlier for Gratuity. ...Less

The gratuity liability is expected to rise, as the new labour codes have redefined wages and eased the el ...More

The gratuity liability is expected to rise, as the new labour codes have redefined wages and eased the eligibility for such a benefit for fixed-term workers, including the contractual ones. This liability, the ICAI said, needs to be recognised in interim financial statements/results of companies for the December quarter, in sync with relevant accounting requirements. ...Less

The purpose of the Special Deposit Scheme was to provide better returns to non-government provident funds ...More

The purpose of the Special Deposit Scheme was to provide better returns to non-government provident funds, superannuation and gratuity funds. ...Less

Dilip Lakhani Senior Chartered Accountant, answers queries from our readers on income tax and other levie ...More

Dilip Lakhani Senior Chartered Accountant, answers queries from our readers on income tax and other levies. ...Less

Since the UAE implemented a new labor law, Federal Decree-Law No. 33 of 2021, many changes have been made ...More

Since the UAE implemented a new labor law, Federal Decree-Law No. 33 of 2021, many changes have been made to the laws governing employment relationships between employers and employees in the private sector. What modifications have been made to the end-of-service benefit computation under the new law? ...Less

Banks, which will now be required to set aside higher provisions for employee gratuities under the new ac ...More

Banks, which will now be required to set aside higher provisions for employee gratuities under the new accounting norms, have urged the government to relax the tax exemption limit. ...Less

The standing committee on labour had recommended gratuity eligibility criteria to be reduced between one ...More

The standing committee on labour had recommended gratuity eligibility criteria to be reduced between one and three years since duration of jobs have reduced in general and more and more contract workers are hired. ...Less

Railway technical supervisors have put forward significant demands to the 8th Pay Commission. Key proposa ...More

Railway technical supervisors have put forward significant demands to the 8th Pay Commission. Key proposals include a Rs 52,000 minimum salary and multiple fitment factors. They also seek higher House Rent Allowance rates and the inclusion of training periods for MACP calculations. The association aims for these suggestions to be part of the commission's recommendations. ...Less

In taking over a going concern, the buyer at times has to bear the accrued liabilities of existing employ ...More

In taking over a going concern, the buyer at times has to bear the accrued liabilities of existing employees. One such liability, the payment of gratuity, till the date of transfer is deferred and becomes payable to the employees as and when the employment with the purchaser comes to an end or is terminated. ...Less

The Himachal Pradesh government has ordered the immediate release of the remaining 30 percent gratuity an ...More

The Himachal Pradesh government has ordered the immediate release of the remaining 30 percent gratuity and leave encashment arrears for Class-IV employees. These employees retired or died in service between January 1, 2016, and January 31, 2022. This move ensures that all such pending payments are now cleared. The government has already disbursed interim relief and dearness allowance installments. ...Less