Government of India Enhances Gratuity Limits for Central Government Employees
Government of India Enhances Gratuity Limits for Central Government Employees
In a significant move towards the welfare of central government employees, the Government of India has announced an enhancement in the maximum limit of gratuity, following the recommendations of the Seventh Central Pay Commission (CPC). This change is detailed in the Office Memorandum No. 28/03/2024-P&PW (B)/Gratuity/9559, issued by the Ministry of Personnel, Public Grievances & Pensions, Department of Pension & Pensioners’ Welfare on May 30, 2024.
Key Highlights:
- Increase in Dearness Allowance (DA): The Department of Expenditure has issued instructions to increase the Dearness Allowance rates from 46% to 50% of the Basic Pay, effective from January 1, 2024.
- Enhanced Gratuity Limit: In accordance with the government’s decisions, the maximum limit of Retirement Gratuity and Death Gratuity under the Central Civil Services (Pension) Rules, 2021, or the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021, has been increased by 25%. This enhancement raises the gratuity limit from Rs. 20.00 Lakh to Rs. 25.00 Lakh, effective from January 1, 2024.
- Implementation and Communication: All Ministries/Departments are requested to disseminate the contents of this order to their respective Controller of Accounts/Pay and Accounts Offices and all attached or subordinate offices.
- Formal Amendments: Formal amendments to the CCS (Pension) Rules, 2021, and the CCS (Payment of Gratuity under NPS) Rules, 2021, will be notified separately.
This memorandum is issued in consultation with the Ministry of Finance, Department of Expenditure, and the Comptroller and Auditor General of India, ensuring comprehensive compliance with Article 148(5) of the Constitution of India.
For further details, the official memorandum is available for reference.
Issued by : Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
Lok Nayak Bhawan, Khan Market, New Delhi-110003
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