After the DA touched 50% of the basic salary limit, the Department of Pension and Pensioners’ Welfare (DoPPW) had issued a notification on May 30 enhancing gratuity limit for central government employees from 20 lakh to Rs 25 lakh. This hike was made effective from January 1, 2024.
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7th Pay Commission News: The government has enhanced the maximum gratuity limit from Rs 20 lakh to Rs 25 lakh for employees of BSNL and MTNL who opted for a pension under the combined service framework. The change, effective from January 1, 2024, aligns with the rise in Dearness Allowance (DA) to 50%.
After the DA touched 50% of the basic salary limit, the Department of Pension and Pensioners’ Welfare (DoPPW) had issued a notification on May 30 enhancing gratuity limit for central government employees from 20 lakh to Rs 25 lakh. This hike was made effective from January 1, 2024. As per norms, all allowances get revised upwards by 25% on DA hitting the 50% of the basic pay for central government employees. In line with rules, the Centre announced a revision in retirement gratuity limit as well along with hike in various allowances.
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Now, the Department of Telecommunications, Ministry of Communications, has issued clarification on the applicability of the enhanced maximum limit of Gratuity from Rs 20 lakh to Rs 25lakh to the BSNL/MTNL absorbees, who opted for pension for combined service and whose pension is governed under Rule 37 of CCS(Pension) Rules 2021.
The rates for payment of Death-cum-Retirement-Gratuity (DCRG) “shall be revised as per para-3 of DoP&PW OM No.28/03/2024-P&PW(B)/Gratuity/9559 dated 30.05.2024. The maximum limit of Death Cum Retirement Gratuity shall be Rs 25 lakh w.e.f. 01.01.2024,” the Department of Telecommunications said in its Office Memorandum.
Here’s a simplified breakdown of what this means for pensioners.
Gratuity limit enhanced:
The enhancement in the Death Cum Retirement Gratuity (DCRG) limit to Rs 25 lakh is applicable to BSNL and MTNL employees whose pensions are governed by Rule 37 of the CCS (Pension) Rules, 2021. The new limit applies to gratuity payments made after January 1, 2024.
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No change in pension calculation:
There are no changes in the existing formula used for calculating pension or family pension. Employees and pensioners will continue to receive their pensions as per the previously established method.
Commutation values unaffected:
The commutation provisions for pension remain the same, ensuring no alteration to the commuted value or calculations.
Applicability:
This change directly impacts BSNL/MTNL absorbees who have opted for pensions based on their combined service. It is part of the government’s broader adjustments following the increase in DA levels.
Government approval:
The Department of Telecommunications issued this clarification with the approval of the Secretary (Telecom), providing formal guidance on the implementation of this enhanced gratuity limit.
This update offers a financial boost for pensioners in light of the rising cost of living, reinforcing the government’s commitment to employee welfare.
