DoPPW Increases Maximum Limit of Retirement and Death Gratuity for Central Government Employees to Rs 25 Lakh

In implementation of the recommendations of the Seventh Central Pay Commission, the Department of Pension and Pensioners’ Welfare vide OM No. 38/37/2016-P&PW (A) (i) dated 04.08.2016 had issued instructions relating to revision of provisions regulating pension/gratuity/commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, etc.

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% i.e. from Rs 20 Lakh to Rs 25 Lakh on reaching the Dearness Allowance Rates to 50%.

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

Accordingly, the Department of Pension & Pensioners’ Welfare, after due consultation with stakeholders, issued instructions vide OM No. 28/03/2024-P&PW (B)/Gratuity/9559 dated 30.05.2024, enhancing the maximum limit of Retirement Gratuity and Death Gratuity to Rs. 25 lakh under the CCS (Pension) Rules, 2021 and the CCS (Payment of Gratuity under NPS) Rules, 2021. This enhancement will be effective from 1^st  January 2024.

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.