Bhartiya Mazdoor Sangh (BMS) backed bank organisation NOBW has demanded that the government bring an ordinance to double the tax-free gratuity limit to Rs 20 lakhs for all public as well as private sector employees.
National Organisation of Bank Workers (NOBW) also made a case for implementing this from January 1, 2016.
The limit of gratuity of central government employees was doubled to Rs 20 lakh with the enforcement of 7th Pay Commission from January 1, 2016.
Thousands of employees who have retired since January 1, 2016, have not been able to get the benefit of this increased gratuity, NOBW said in a statement.
"The government cannot discriminate between employees of the central government and the private sector and the public sector workers in this way," it said.
The Union Cabinet has already given its approval to the introduction of the Payment of Gratuity (Amendment) Bill, 2017, in Parliament.
The government may introduce the Bill, which seeks to double tax-free gratuity for formal sector employees to Rs 20 lakh, in the upcoming Winter Session beginning December 15.
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