• As per the recent amendment under the Payment of Gratuity Act, 1972, the maximum limit for both retirement gratuity and death gratuity has been raised to ₹25 lakhs, effective from 1st January 2024.
• Prior to this change, the limit was ₹20 lakhs for retirement gratuity and death gratuity. This enhancement ensures that employees in both the private and public sectors are eligible for a higher amount as a gratuity payment upon retirement or in case of death during service.
• This change aims to provide better financial security for employees and their families, particularly in the event of retirement or unforeseen circumstances like death.
Study Notes
Category
