7th Pay Commission: Recently, the central government had increased the DA of employees to 50 percent. Now the limit of retirement and death gratuity has been increased by 25 percent from Rs 20 lakh to Rs 25 lakh.
7th Pay Commission: The central government had increased the DA of the employees before the Lok Sabha elections. Now the central government has given another gift to the employees. The central government has decided to increase their gratuity limit. After the government increased the dearness allowance of central employees by 4 percent, the central government has increased the retirement gratuity and death gratuity by 25 percent. With this, the gratuity limit has increased from Rs 20 lakh to Rs 25 lakh. This increase will be considered effective from January 1, 2024.
The Office Memorandum dated 30 May 2024 stated that as per the decision of the government in the implementation of the recommendations of the 7th Pay Commission, the maximum limit of retirement gratuity and death gratuity under the Central Civil Services (Pension) Rules, 2021 or Central Civil Services (Payment of Gratuity under National Pension System) Rules 2021 will be increased by 25% i.e. from Rs 20.00 lakh to Rs 25.00 lakh from 1 January 2024.
The decision taken on 30 April was stayed on 7 May
Earlier, the decision to increase the gratuity was taken on 30 April. But, it was stayed by issuing a circular on 7 May.
What is gratuity
If an employee works for a long time in a company, then he gets gratuity in addition to salary, pension and PF. This is a reward given to an employee by the company. At present, any employee is entitled to get gratuity only if he has worked for at least 5 years.
