8th Pay Commission: Preparations underway to revise death benefit rules; updates on gratuity limits too

8th Pay Commission: Discussions regarding the 8th Pay Commission's recommendations are currently ongoing, and amidst this, the topics of death benefits and gratuity are also being addressed. Here is a look at the demands being raised by employees.

8th Pay Commission News: Deliberations on the 8th Pay Commission's recommendations are currently in progress. Various organizations are voicing the demands of the employee class before the Commission. In this context, government employees and pensioners have recently sought changes to gratuity rules. There are several other demands from employees as well, which have been submitted to the Commission via memoranda. Let us explore what these other demands are.

What are the demands regarding gratuity?

The IRTSA (Indian Railways Technical Supervisors Association) has demanded that the maximum gratuity limit be raised to ₹50 lakh. Through a memorandum submitted to the Commission, the organization also suggested that the gratuity calculation method be adjusted to be more beneficial for employees. This move could significantly benefit lakhs of central government employees and their families.

Additionally, a proposal has been made to increase the death gratuity—paid to the family upon the death of a central government employee—based on their length of service. Meanwhile, the Railway Employees' Senior Citizens Welfare Society has suggested that the maximum gratuity limit should be revised periodically; specifically, the limit should be raised in tandem with rising inflation to ensure employees benefit.

Gratuity limit should be ₹75 lakh

Furthermore, the National Council-Joint Consultative Machinery (NC-JCM) has proposed raising the maximum gratuity limit to ₹75 lakh. They have also demanded that the gratuity calculation be based on 25 days instead of 30 days. Citing the example of private-sector employees, the proposal suggests that government employees should also receive similar benefits.

It is worth noting that employees become eligible for gratuity upon completing five years of service with their organization. Currently, the gratuity amount is calculated based on basic pay and Dearness Allowance (DA), subject to a maximum ceiling of ₹25 lakh; this amount can go up to 16.5 times the employee's salary. However, the final decision taken by the commission will only be known in due course.