Big News: Enhancement of Maximum Gratuity Limit to 25 Lakhs for Central Government Employees as DA Hits 50% – DoPPW Order Dated 30.5.2024

DoPPW has finally issued order on 30.5.2024 for Enhancement of Maximum Gratuity Limit to 25 Lakhs from 20 Lakhs for Central Government Employees on reaching the Dearness Allowance rates to 50%

Enhancement of Maximum Gratuity Limit to 25 Lakhs

No. 28/03/2024-P&PW (B)/Gratuity/9559
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

Lok Nayak Bhawan, Khan Market,
New Delhi-110003, Dated 30.05.2024

OFFICE MEMORANDUM

Subject: Enhancement of maximum limit of Gratuity to Central Government employees on reaching the Dearness Allowance rates to 50% – Implementation of recommendations of the Seventh CPC – reg.

The undersigned is directed to refer to this Department’s OM No. 38/37/2016-P&PW (A) (i) dated 04.08.2016 regarding revision of provisions regulating pension/ gratuity/commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, etc. in implementation of the Government’s decision on the recommendation of the Seventh Central Pay Commission.

2. Department of Expenditure vide their OM No. 1/1/2024-E-II(B) dated 12.03.2024 has issued instructions regarding enhancement of Dearness Allowance Rates from 46% to 50% of the Basic Pay with effect from 1st January 2024.

Maximum Gratuity Limit Increased from 20 Lakhs to 25 Lakhs

3. 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 1st January 2024.

4. All Ministries/Departments are requested to bring the contents of this order to the notice of Controller of Accounts/Pay and Accounts Offices and attached or subordinate offices under them.

5. This issues in consultation with Ministry of Finance, Department of Expenditure vide ID Note No. 1(8)/EV/2024 dated 27.05.2024

6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, this order is issued in consultation with Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

7. Formal Amendment to the CCS (Pension) Rules, 2021 and the CCS (Payment of Gratuity under NPS) Rules, 2021 will be notified separately.

(Dr. Pramod Kumar)
Director to the Government of India

To,

1. All Ministries/Departments of Government of India
2. Principal Director, Office of Comptroller & Auditor General of India, New Delhi
3. Controller General of Accounts, New Delhi
4. CCA, Central Pension Accounting Office, New Delhi.

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