Finance Minister Piyush Goyal announced some middle class and lower-middle-class friendly sops. The government increased the gratuity limit from Rs 10 lakh to Rs 30 lakh. He was speaking in the context of the 7th Pay Commission.
Previously, the last Gratuity Amendment Act of 2018 had brought in two major changes. The first related to employees getting a larger amount of gratuity payable by the employer versus the past. It had also increased maternity leave period to 26 weeks.
Gratuity is the money that is paid by an employer to an employee at the end of his service. The employee must complete 5 or more years in a company to be eligible.
The FM also announced a mega pension scheme called the Pradhan Mantri Shram Yogi Mandhan (PMSYM) for the unorganised sector. A pension of Rs 3,000 will be paid out after retirement age for those in salary bracket of up to Rs 15,000/- per month Employees would have to make a monthly contribution of Rs100 per month.
The FM said 50% of the GDP comes from sweat and toil of 42 crore workers in the unorganised sector.