7th Pay Commission: Gratuity Limit For Central Govt Employees Increases By 25% After DA Hike

7th Pay Commission: Recently, the central authorities had elevated the DA of staff by 50 %. Now the restrict of retirement and dying gratuity has been elevated by 25 % from Rs 20 lakh to Rs 25 lakh.

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The central authorities had elevated the DA of the workers earlier than the Lok Sabha elections. Now the central authorities has given one other present to the workers. The central authorities has determined to extend their gratuity restrict. After growing the dearness allowance of central staff by 4 %, the central authorities has elevated the retirement gratuity and dying gratuity by 25 %. With this, the gratuity restrict has elevated from Rs 20 lakh to Rs 25 lakh. This improve will probably be thought-about efficient from January 1, 2024.

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The Office Memorandum dated 30 May 2024 stated that as per the choice of the Government within the implementation of the suggestions of the 7th Pay Commission, the utmost restrict of retirement gratuity and dying gratuity underneath the Central Civil Services (Pension) Rules, 2021 or Central Civil Services (Payment of Gratuity underneath National Pension System) Rules, 2021 will probably be elevated by 25% i.e. from Rs 20.00 lakh to Rs 25.00 lakh with impact from 1 January 2024.

The resolution taken on 30 April was stayed on 7 May

Earlier, the choice to extend gratuity was taken on 30 April. But, it was stayed by issuing a round on 7 May.

What is gratuity?

If an worker works for a very long time in an organization, then he will get gratuity along with wage, pension and PF. This is a reward given to an worker by the corporate. Currently, any worker is entitled to get gratuity provided that he has labored for not less than 5 years.

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