In a major relief to salaried class in private sector, government cleared a proposal to raise the income tax ceiling for payment of gratuity from the existing limit of 3.5 lakh to 10 lakh rupees. The government is likely to table a bill amending the gratuity law during the current Budget session of Parliament for the implementation of this decision. This will bring parity between government and private sector employees in enjoying equal gratuity benefits. The Sixth Pay Commission recommendations had raised the limit for central government employees. <br/><br/>Earlier, the Labour Ministry in its pre-Budget consultation with the Finance Ministry had proposed to raise the Income Tax exemption limit for gratuity funds up to Rs 10 lakh for private employees.<br/>