Latest on DA hike: 25% increase in gratuity due to dearness allowance hike kept on hold; here’s why
Employees' Provident Fund Organisation (EPFO) has opted to keep in «abeyance» the increase in retirement and death gratuity for workers, which is a blow to those employed by the government and organised sector.
The maximum retirement benefit and death benefit were increased by 25%, from Rs 20 lakh to Rs 25 lakh, according to an order released on April 30, 2024 by the EPFO last month.
A week later, on May 7, the retirement fund organisation released another circular saying that, effective immediately, the gratuity augmentation due to the rise in DA has been placed on hold. The decision's rationale has not been stated in the order.
According to the Ministry of Labour & Employment circular dated May 7, 2024. “The circular number HRD-1/8/2024/Misc-Circulars-Part(1)/1004 dated 30.4.2024 is kept in abeyance with immediate effect,”
According to the Office Order dated Ministry of Labour and Employment, Govt of India dated April 30, 2024, “As per para 6.2 of the OM no. 38/3712016-P&PW(A)(1) dated 04.08.2016 issued by Deartment of Pension and Pensioners' Welfare, Ministry of Personnel, Public Grievances and Pensions, Government of India, the maximum limit of Retirement gratuity and death gratuity shall be increased by 25% whenever the dearness allowance rises by 50% of the basic pay. Accordingly, the maximum limit of Retirement gratuity and death gratuity shall be increased by 25% to Rs. 25 Lakh from existing Rs 20 Lakh on account of revision of Dearness Allowance payable to Central Government Employees to 50% of the
