7th Pay Commission DA hike influence: Gratuity limit hiked after being put on maintain; details here

Date:



7th Pay Commission information: The central authorities’s choice to lift the dearness allowance for its staff by 4%, bringing it to a complete of fifty%, has led to important adjustments in varied allowances, together with retirement gratuity. This improve is a considerable profit for presidency employees.
ET quoted the most recent per the Office Memorandum (OM) dated May 30, 2024, “Accordingly, as per the Government’s decisions in implementation_ of the recommendations of the Seventh CPC, 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, would be increased by 25% i.e.from Rs 20.00 Lakh to Rs 25.00 Lakh, with effect from I s’ January 2024.”
This implies that the higher limit for each Retirement Gratuity and Death Gratuity will likely be raised by 25%, from Rs 20 lakh to Rs 25 lakh, ranging from January 1, 2024.
The identical announcement was initially made on April 30, 2024, however was briefly suspended on May 7 with the next assertion: “The circular number HRD-1/8/2024/Misc-Circulars-Part(1)/1004 dated 30.4.2024 is kept in abeyance with immediate effect.”

The Office Order dated April 30, 2024, issued by the Ministry of Labour and Employment, Govt of India, said, “As per para 6.2 of the OM no. 38/3712016-P&PW(A)(1) dated 04.08.2016 issued by Department of Pension and Pensioners’ Welfare, Ministry of Personnel, Public Grievances and Pensions, Government of India, the maximum limit of Retirement gratuity and death gratuity shall be increased by 25% whenever the dearness allowance rises by 50% of the basic pay. Accordingly, the maximum limit of Retirement gratuity and death gratuity shall be increased by 25% to Rs. 25 Lakh from existing Rs 20 Lakh on account of revision of Dearness Allowance payable to Central Government Employees to 50% of the basic pay w.e.f 1.01.2024, subject to other conditions mentioned in the DoP&PWOM dated 04.08.2016.”
The authorities introduced a 4% improve within the dearness allowance (DA) and dearness aid (DR) in March 2024, offering much-needed help to numerous central authorities staff and pensioners. This improve introduced the DA to 50%, which additionally led to an increase in varied parts of a central authorities worker’s wage.
Gratuity is a profit plan supplied by employers to staff who’ve labored constantly for at least 5 years.
According to the Payment of Gratuity Act, 1972, an worker is eligible to obtain gratuity after rendering steady service for at the least 5 years with a company. Gratuity is payable to the worker beneath the next situations:
a) Upon superannuation, or
b) Upon retirement or resignation
However, there may be one exception to the requirement of steady service for 5 years to obtain gratuity.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Zepto raises $665 million at a $3.6 billion valuation

MUMBAI: Quick commerce agency Zepto has...

Pat Cummins shine with hat-trick as Australia beat Bangladesh under DLS method

Australia restricted Bangladesh to 140 for eight with...