seventh Pay Fee DA Hike: The Staff’ Provident Fund Organisation (EPFO) has made a big determination regarding retirement and dying gratuity for authorities staff. It has placed on maintain the rise in retirement and dying advantages ensuing from a hike in Dearness Allowance to 50%.
Based on an ET report, EPFO had on April 30, 2024, introduced a 25% improve within the most retirement profit and dying profit, elevating it from Rs 20 lakh to Rs 25 lakh.Nevertheless, only a week later, on Might 7, they launched a round placing the gratuity hike on maintain. The order didn’t present a rationale for the choice.
Based on a round from the Ministry of Labour & Employment dated Might 7, 2024, the sooner order relating to the gratuity improve has been stored in abeyance with instant impact.
As per the Ministry of Labour and Employment order dated April 30, 2024, quoted by ET, the utmost retirement and dying gratuity ought to improve by 25% each time the dearness allowance (DA) rises by 50% of the essential pay. Thus, with the DA reaching 50% as of January 1, 2024, the gratuity limits had been to extend from Rs 20 lakh to Rs 25 lakh, following the situations set by the Division of Pension and Pensioners’ Welfare of their 2016 order.

DA and DR by 4% in March 2024

The Central authorities elevated the dearness allowance and dearness aid by 4% in March 2024. This hike, elevating the DA to 50%, supplied important aid for tens of millions of central authorities staff and pensioners and led to will increase in varied parts of their salaries.
Allowances elevated:
Following the dearness allowance hike to 50% earlier this yr, sure allowances, such because the Kids’s Training Allowance (CEA) and the Hostel Subsidy, robotically elevated by as much as 25% for workers and retirees.
Based on an OM launched by the Ministry of Personnel, Public Grievances and Pension on April 25, 2024, the Kids’s Training Allowance (CEA) and Hostel Subsidy limits robotically improve by 25% each time the dearness allowance (DA) rises by 50%. This adjustment follows the enhancement of DA to 50% efficient January 1, 2024, as introduced by the Ministry of Finance on March 12, 2024.
What’s gratuity?
Gratuity is a profit plan supplied by the employer to the worker for steady service of 5 years or extra.
Based on the Fee of Gratuity Act, 1972, an worker is eligible for gratuity if they’ve labored repeatedly for at the very least 5 years with an organisation. Gratuity is payable:
a) On superannuation
b) On retirement or resignation
There may be an exception the place the five-year steady service situation doesn’t apply.


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