After the increase in the dearness allowance, central employees will receive another benefit: more money after retirement. After the DA rate reached 50 percent, the benefits related to retirement also increased.
Memorandum Came Recently
An office memorandum was also issued on May 30 in this regard, which stated that the benefits related to retirement have increased for central employees. According to the memo, the gratuity limit has increased as per the decision of the Central Government to implement the recommendations of the Seventh Pay Commission. The maximum retirement and death gratuity limit has increased in the Central Civil Services (Pension) Rules 2021, and Central Civil Services (Payment of Gratuity under National Pension Systems) Rules 2021.
Now, The Maximum Limit Has Become This Much
The maximum retirement and death gratuity limit has been increased by 25 percent. It is now Rs 25 lakhs, up from Rs 20 lakhs earlier. This change is effective January 1, 2024. This means that all the central employees who have retired after January 1, 2024, and will retire in the future will benefit from the increased gratuity limit.
DA Increased To 50 Percent In March
According to the recommendations of the Seventh Pay Commission, when the dearness allowance rate touches 50 percent, many other allowances are also revised. Gratuity is also revised when DA is 50 percent. The central government last increased the dearness allowance for central employees in March 2024. At that time, the dearness allowance was increased by 4 percent, which increased its rate to 50 percent.
What Is Gratuity?
This expansion in the maximum gratuity limit aligns with the recommendations of the Seventh Pay Commission. Gratuity is one of the many retirement benefits available to employees. All employees who work continuously for 5 years in a department receive gratuity. If an employee retires or leaves the job after working continuously for 5 years, he gets a gratuity.
