Gratuity and leave encashment rules have changed. Revised DA percentage to be considered. Let’s find out what benefits retirees can get in this order.
The central government has recently increased the Dearness Allowance for employees. It has also revised the DA percentage to be taken into account in calculating gratuity and leave encashment. This applies to employees who retired between January 1, 2020 and July 30, 2021.
According to the revised rules, the DA rate will be 21 per cent for those who retire between January 1, 2020 and June 30, 2020. For those who retire between July 1, 2020 and December 31, 2020, the DA rate will be 24 percent. For those who retire between January 1, 2021 and June 30, 2021, the DA rate is 28 percent.
According to reports, those with a basic salary of Rs 40,000 at the time of retirement will benefit the most from the 11 per cent DA hike. Their gratuity and leave cash increase will be around Rs 1,17,000. If they have a basic pay of Rs 2.5 lakh for the same month, their retirement fund will increase to over Rs 7 lakh.
According to the current rules .. Gratuity payment is available after the completion of five years of service. However, if the new Labor Code comes into force, there will be a chance of getting gratuity after completing one year of service. The new code is due to take effect on October 1. However it looks like a chance to postpone.
