In a major announcement, the central government has increased the maximum gratuity limit from Rs 20 lakh to Rs 25 lakh. However, this raised an important question – who will actually benefit from this hike? The government has now issued a clarification, outlining which categories of employees will be eligible for the revised gratuity limit.
Who is not included in the circle? – Employees who do not fall under the Central Civil Services rules will not be considered eligible for gratuity. This includes personnel working in banks, port trusts, RBI, PSUs, autonomous institutions, universities or the state government. These institutions function under their own separate rules; therefore, this department does not decide on their cases.
In simple terms, the increased gratuity limit of Rs 25 lakh will apply only to central government employees covered under the Civil Services Pension Rules 2021 under NPS will get a maximum gratuity of up to Rs 25 lakh. Employees outside the circle are advised to consult their respective departments to determine the regulations applicable to them.
This decision by the government comes as a relief for long-serving central government employees. With the enhanced gratuity limit, the retirees will now achieve higher financial support at the time of retirement. This also ensures improved stability and comfort in their post-retirement years.
