7th Pay Commission important implementation

7th Pay Commission latest: In a major good news for central government employees, the government recently provided a host of new benefits which will help them save massively on their retirement or when they leave a job. The showstopper was gratuity payment to central government employees under

7th Pay Commission. Centre had accepted increasing the gratuity ceiling from Rs 10 lakh to Rs 20 lakh. Further, the Payment of Gratuity Bill for formal sector employees has been modified by doubling tax-free gratuity limit up to Rs 20 lakh from previous Rs 10 lakh. Now this is a major booster for central government employees who want hefty amounts to come into their bank accounts on their retirement. Now not only they will receive more gratuity, but will also save massively on taxes. Yes, they do not have to pay large sums of money to the taxman.


A formal sector employee is the one who works for normal hours and receives regular wages. These are employees of organized sectors and are contributing to India’s gross national product (GNP) and Gross Domestic Product (GDP). They are taxed and monitored by the government.

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