Gratuity: RBE No.50/2024 – Enhancement of Maximum Limit

No.2016/F(E)III/1/(1)/8, dated 31.05.2024

Sub: Enhancement of maximum limit of Gratuity to Central Government employees on reaching the Dearness Allowance rates to 50% Implementation of recommendation of the Seventh CPC – reg.

1. A copy of Department of Pension and Pensioners’ Welfare (DOP&PW)’s O.М. No.28/03/2024-P&PW (B)/Gratuity/9559, dated 30.05.2024 on the above subject is enclosed for compliance and guidance. These instructions shall apply mutatis mutandis on Railways also. DOP&PW’s O.M.No.38/37/2016-P&PW(A)(i), dated 04.08.2016 mentioned in enclosed O.M. was adopted on Railways vide this office letter of even number dated 12.08.2016 (RBE No.99/2016).

2. The provisions of retirement and death gratuity in respect of railway employees covered under National Pension System were adopted on Railways vide Board’s letter No.2012/F(E)III/1(1)/4, dated 05.09.2016 (RBE No.105/2016).

3. Please acknowledge receipt.

Government of India

Ministry of Personnel,

Public Grievances & Pensions

Department of Pension & Pensioners’ Welfare

No.28/03/2024-P&PW (B)/Gratuity/9559, dated 30.05.2024

OFFICE MEMORANDUM

Sub: Enhancement of maximum limit of Gratuity to Central Government employees on reaching the Dearness Allowance rates to 50% – Implementation of recommendations of the Seventh CPC – reg.

1.     The undersigned is directed to refer to this Department’s OM No.38/37/2016-P&PW(A)(1), dated 04.08.2016 regarding revision of provisions regulating pension/ gratuity/ commutation of pension/ family pension/ disability pension/ ex-gratia lump-sum compensation, etc. in implementation of the Government’s decision on the recommendation of the Seventh Central Pay Commission.

2.     Department of Expenditure vide their OM No.1/1/2024-E-ll(B), dated 12.03.2024 has issued instructions regarding enhancement of Dearness Allowance Rates from 46% to 50% of the Basic Pay with effect from 1^st  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 under National Pension System) Rules, 2021, would be increased by 25% i.e. from Rs 20.00 Laklh to Rs 25.00 Lakh, with effect from 1^st 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 ID Note No.1(8)/EV/2024, dated 27.05.2024.

6.     In so far 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) of the Constitution of India.

7.     Formal Amendment to the CCS (Pension) Rules, 2021 and the CCS (Payment of Gratuity under NPS) Rules, 2021 will be notified separately.

Download Railway Board Circular RBE No.50/2024

Forward reference ⇒ RBE No.