After raising the Dearness Allowance (DA) by 4 per cent in March, 2024, the Government of India (GOI) has now taken the decision to increase the gratuity limit.

The maximum limit of retirement gratuity and death gratuity has been raised by the GOI from Rs. 20 lakh to Rs. 25 lakh, with effect from 1st January. 2024. 

Issued by the Ministry of Personnel, Public Grievances and Pensions, this revision aims to enhance benefits of the employees working for the central government.

If you’re wondering what gratuity means, it is basically a reward given by a company/organization to an employee who has worked for a long time. It is provided in addition to the employee’s salary, pension and Provident Fund (PF). It is important to note that an employee is only entitled to gratuity if they have served the company/organization for a minimum of 5 years.

By increasing gratuity and allowance, the GOI aims to provide financial security to its employees so that they can keep up with the rising cost of living.


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