Central employees' fun; After DA, now 25% increase in gratuity, will get benefit in these situations
Gratuity Limit Increased 25 Percent: The central government has given the gift of increasing the gratuity limit to the central employees. As per the recommendations of the 7th Pay Commission, the government has increased the gratuity and death gratuity of the retiring employees by 25 percent. After this increase, it has increased from Rs 20 lakh to Rs 25 lakh. This increase will be effective from January 1, 2024. That is, the employees retiring after January 1, 2024, will get its benefit. Earlier, the dearness allowance (DA) of central employees was increased by 4 percent. After this, their DA increased to 50 percent. Earlier, the same announcement was made about the increase in gratuity on 30 April last month, but it was stopped on 7 May.
DA had an impact
The increase in gratuity is directly related to DA. In fact, according to the Ministry of Labor and Employment, in the memorandum issued on August 4, 2016, by the Department of Pension and Pensioners Welfare, Ministry of Personnel, Public Grievances and Pensions, Government of India, it is mentioned that whenever the dearness allowance increases by 50 percent of the basic salary, the maximum limit of retirement and death gratuity will increase by 25 percent. This has been mentioned in paragraph 6.2 of Memorandum No. 38/3712016-P&PW (A) (1).
Gratuity increased.
What is gratuity?
Gratuity is given to people working in government or private companies. Gratuity means amount. Those employees who work continuously for at least 5 years in a company are given some amount by the company. This amount gets added every month and is received on retirement. Or if an employee leaves the company after 5 years, he is still entitled to get gratuity. If one leaves the job before 5 years, he does not get this benefit.
8th Pay Commission may be formed
It is speculated that the 8th Pay Commission may be implemented. If this happens, the salary of central employees will increase significantly. However, no decision has been taken by the government on this yet. It is believed that after the results of the Lok Sabha elections, when the new government is formed, a decision can be taken on this. Currently, central employees are being given a salary as per the 7th Pay Commission. This commission was formed in 2014. However, it was implemented in the year 2016. According to this commission, the minimum basic salary of the employee can be Rs 26 thousand.
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