7th Pay Commission latest news: Even as there was no announcement regarding the minimum salary hike of the central government employees, which has been a long-pending demand by these employees, in the Union Budget 2019-20, Finance Minister Piyush Goyal said the government has increased its contribution to the National Pension Scheme (NPS) and Gratuity limits this year.
He said now the government’s contribution to the employees’ NPS is at 14 percent. However, the government employees contribution is only 10 percent of their basic salary to NPS. “New pension scheme will come up to ensure an increase in centre’s contribution by four percent.” Finance Minister Piyush Goyal Said while presenting the Union Budget 2019-20.
The government has also increased the gratuity payment limit of the employees from 10 lakh to 20 lakh, the Minister said while presenting the the Budget. The government had earlier announced the NPS in place of the Old Pension Scheme.
The Employee Provident Fund (EPF) had also increased from Rs 2.5 lakh to Rs 6 lakh in case of demise of the employee. There have been incentives for private, government sector employees, farmers, and homeless people. Income tax exemption limit has been increased, including for the private and public sector employees, in the Budget 2019-20. Income up to Rs 5 lakh income now gets the full tax rebate, Piyush Goyal announced.
TDS threshold on interest on bank and post office deposits raised from Rs 10,000 to Rs 40,000 and Tax threshold on rental income raised from Rs 1.8 lakh to Rs 2.4 lakh. The individuals with Gross Income of Rs 6.5 lakh will not have to pay any tax if the make investments in Provident Fund or other prescribed funds.