Maximum limit of retirement & death gratuity for Central govt employees hiked to INR 25 lakh

NEW DELHI — The government on Saturday announced an increase in the maximum limit of retirement gratuity and death gratuity for Central government employees from INR 20 lakh to INR 25 lakh on reaching the dearness allowance rates to 50 per cent. 

The Department of Expenditure had issued instructions regarding the enhancement of Dearness Allowance rates from the existing 46 per cent to 50 per cent of the basic pay, with effect from January 1.

As per the government’s decisions on the recommendations of the Seventh CPC, “the maximum limit of Retirement Gratuity and Death Gratuity would be increased by 25 per cent – from INR 20 Lakh to INR 25 lakh – on reaching the Dearness Allowance Rates to 50 per cent”, said a notification from the Ministry of Personnel, Public Grievances & Pensions.

This enhancement will be effective from January 1, 2024, said the Department of Pension and Pensioners’ Welfare.

“It is to be mentioned that the Retirement Gratuity and Death Gratuity depend upon the basic pay last drawn and the length of the service rendered by the employee,” the ministry added.