New Delhi: The Central Government has issued a major update for central government employees. The government has also issued an important clarification regarding gratuity payments. According to a report, the Department of Pension and Pensioners’ Welfare has surprised everyone with a recent order.
The revised gratuity limit of ₹25 lakh will now apply only to central government civil servants covered under the Central Civil Services Rules 2021 or the Central Civil Services Rules 2021. The Department of Pension and Pensioners’ Welfare will also remain a central government body responsible for formulating policies and providing guidance on matters related to pension, retirement benefits, and other welfare measures for central government employees.
Gratuity Rules
It may be surprising to know that the Pension Rules will oversee the implementation of gratuity payments and related schemes. It also ensures that retired and serving civil servants receive their entitlements in a timely and accurate manner. Additionally, a decision has been taken to increase the gratuity limit by 25% upon retirement and death.
This has increased the limit from ₹20 lakh to ₹25 lakh. The new gratuity limit has also come into effect from January 1, 2024. This decision was announced by an office memorandum dated May 30, 2024. This is in line with the recommendations of the Seventh Pay Commission.
The maximum limit for retirement and death gratuity under the Central Civil Services (Pension) Rules, 2021, or the Central Civil Services (Payment of Gratuity under the National Pension System) Rules, 2021, is now ₹25 lakh. This decision was originally taken on April 30, but was put on hold by a circular on May 7.