New Delhi. There’s some good news for central government employees. The government has increased the maximum gratuity limit from ₹20 lakh to ₹25 lakh. However, many have been wondering which employees will receive this benefit.
Will it be available to all or just a few? The government has now provided a clear answer to this question, ensuring no confusion.
In fact, the Department of Pension and Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances and Pensions, recently issued a clarification stating that, as per the Office Memorandum issued on May 30, 2024, only those central government civil servants covered under the Central Civil Services (Pension) Rules, 2021, or the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021, will be eligible for this increased gratuity.
Who does not fall within the scope
This means that employees who do not fall under these rules will not receive this increased gratuity. These include employees of banks, port trusts, the RBI, PSUs (public sector undertakings), autonomous institutions, universities, or state governments. These institutions operate under their own rules, so their cases are not decided by this department.
Simply put, only those central government employees who are covered under the Civil Services Pension Rules 2021 or the NPS Gratuity Rules 2021 will receive a gratuity of up to ₹25 lakh. Other employees will need to check with their department or ministry to determine which rules apply to them.
This government move is a relief for employees who have served in the central services for a long time. They will now enjoy greater financial security at the time of retirement, making their post-retirement life a little more comfortable.
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