7th Pay Commission News Today: The recent announcement of hike in Dearness Allowance by 4% to 50% has resulted in a substantial increase in various other allowances, including retirement benefits and gratuity, providing significant benefits to some government employees.
For the greater benefit of government employees, the Centre has increased 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 notable change came into effect on January 1, 2024, and aligns with the rise in Dearness Allowance (DA) to 50%.
After the dearness allowance hike reached 50% of the basic salary limit, the Department of Pension and Pensioners’ Welfare (DoPPW) had earlier issued a notification on May 30 to make the announcement on hike in gratuity limit for central government employees from 20 lakh to Rs 25 lakh. This hike came into effect from January 1, 2024.
According to guidelines, all allowances get revised upwards by 25% on DA hitting the 50% of the basic pay for central government employees. In the line with the guidleines, the Centre announced a revision in retirement gratuity limit as well along with hike in various allowances.
Now, the Department of Telecommunications, Ministry of Communications, issued another notification 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.
