The Department of Pension and Pensioners’ Welfare issues instructions for enhancement of maximum limit of Retirement Gratuity & Death Gratuity for Central Government employees to Rs 25 lakh

In implementation of the recommendations of the Seventh Central Pay Commission, the Department of Pension and Pensioners’ Welfare has issued instructions relating to revision of provisions regulating pension/gratuity/commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, etc.

As per the Government’s decisions on the recommendations of the Seventh CPC, the maximum limit of Retirement Gratuity and Death Gratuity would be increased by 25% i.e. from Rs 20 Lakh to Rs 25 Lakh on reaching the Dearness Allowance Rates to 50%.

The Department of Pension & Pensioners’ Welfare, after due consultation with stakeholders, issued instructions enhancing the maximum limit of Retirement Gratuity and Death Gratuity to Rs. 25 lakh under the CCS (Pension) Rules, 2021 and the CCS (Payment of Gratuity under NPS) Rules, 2021. This enhancement will be effective from 1st January 2024.

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