One decision and lakhs of employees disappointed, know why you will not get the benefit of Rs 25 lakh gratuity:

News India Live, Digital Desk: Gratuity Payment Rules: The Central Government had increased the maximum limit of gratuity for its employees from Rs 20 lakh to Rs 25 lakh, but after this announcement, a big question remained that who will get this benefit? Now the Department of Pension and Pensioners Welfare (DoPPW) of the government has issued a new order and has removed the curtain on this and clarified the entire situation.

Who will get gratuity of Rs 25 lakh?

The government has said in its clarification that the benefit of increased gratuity of Rs 25 lakh will be available only to those Central Civil Employees who will get Central Civil Services (Pension) Rules, 2021 Or Central Civil Services (Payment of Gratuity under the National Pension System) Rules, 2021 Come within the scope of.

This increase comes after Dearness Allowance (DA) reached 50% this year, which was part of the recommendations of the Seventh Pay Commission. The new limit will be considered effective from January 1, 2024, which means eligible employees retiring on or after this date will get the benefit.

Who will be deprived of this big benefit?

The department has also made it clear that this rule does not apply to everyone. Employees of the following institutions will not be covered under the enhanced gratuity limit of Rs 25 lakh:

• Public Sector Undertakings (PSUs)
• Banks
• Reserve Bank of India (RBI)
• Autonomous Bodies
• Universities
• state government employees
• Society and Port Trust

The rules of gratuity in these institutions are decided by their own service conditions and the respective ministries and this new change will not be applicable to them.

Why did the government have to issue this clarification?

There was a lot of confusion among various ministries and employees after the decision to increase the gratuity limit. The Pension Department was continuously receiving questions and RTI applications regarding this. This clarification has been issued to eliminate this confusion and bring transparency in the rules.