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Enhancement of Gratuity Maximum Limit to 25 Lakhs to Central Government Employees

No. 28/03/2024-P&PW (B)/Gratuity/9859 Government of India Ministry of Personnel, Public Grievances & Pensions Department of Pension & Pensioners’ Welfare Lok Nayak Bhawan, Khan Market, New Delhi-110003, Dated 30.05.2024 OFFICE MEMORANDUM

Subject: Enhancement of maximum limit of Gratuity to Central Government employees on reaching the Dearness Allowance rates to 50% - Implementation of recommendations of the Seventh CPCnull - reg.

The undersigned is directed to refer to this Department's OM No. 38/37/2016-P&PW (A) (i) dated 04.08.2016 regarding revision of provisions regulating pension/gratwity/commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, ete. in implementation of the Government's decision on the recommendation of the Seveath Central Pay Commission

2 Department of Expenditure vide their OM No. 1/1/2024-E-IIB) dated 12.03.2024. has issued instructions regarding enhancement of Deamess Allowance Rates from 46% to 50% of the Basic Pay with effet from 1st January 2024.

3. Accordingly, as per the Government's decisions in implementation of the recommendations of the Seventh CPC, the maximum limit of Retirement Gratuity and Death Gratuity under the Central Civil Services (Pension) Rules, 2021 or the Central Civil Services (Payment of Gratuity System) Rules, 2021, would be increased by 25% ie. from Rs 20.00 Lakh to Rs 25.00 Lakh, with effect from 1st January 2024,

4. All Ministries/Departments are requested to bring the contents of this order to the notice of Controller of Accounts/Pay and Accounts Offices and attached or subordinate offices under them,

5. This issues in consultation with Ministry of Finance, Department of Expenditure vide 1D Note No. 1(8VEV/2024 dated 27.05.2024

6. Insofar as the persons serving in the Indian Audit and Accounts Department are concerned, this ‘order is issued in consultation with Comptroller and Auditor General of India, as mandated under Article 148(5) ofthe Constitution of India

7. Formal Amendment tothe CCS (Penson) Rules, 2021 and the CCS (Payment of Gratuity under NPS) Rules, 2021 wil be notified separately


(Dr. Pramod Kumar)

Director to the Goverment of India

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