New Delhi: Central employees and pensioners' organizations have demanded major changes in the gratuity rules surpassing the 8th Pay Commission. The most prominent demand among these is to increase the existing gratuity limit of Rs 25 lakh to Rs 75 lakh. Along with this, changes have moreover been proposed in the method of gingerly death gratuity and gratuity.
What are the current rules?
The inside government had increased the maximum limit of retirement and death gratuity from Rs 20 lakh to Rs 25 lakh as of January 1, 2024. This hike was implemented without the recommendations of the 7th Pay Legation and Dearness Allowance (DA) crossing 50%.
What are the main demands of the employees?
The National Council-Joint Consultative Machinery (NC-JCM) in its memorandum submitted to the 8th Pay Legation has demanded an increase in the maximum limit of gratuity to 75 lakh. The organization says that the current limit is not sufficient in view of rising inflation and salary structure.
Apart from this, there is moreover a proposal to transpiration the formula for gingerly gratuity. Currently, gratuity is calculated on the understructure of one quarter month's salary, while employee organizations are taxing to make it increasingly beneficial.
What changes are sought in death benefits?
Pensioners and employee organizations have moreover demanded to make the death gratuity increasingly liberal. They oppose that the financial assistance given to the family in specimen of death of an employee during service should be increased in vibrations with the current circumstances. Some organizations have moreover tabbed for parity between variegated pension systems and periodic review of death benefits.
Has any visualization been taken yet?
At present all these demands and suggestions are proposals placed surpassing the 8th Pay Commission. The Legation will consider these and submit its recommendations to the government. The final visualization will be taken by the inside government only without considering the report of the commission.
What does this midpoint for employees?
If proposals like increasing the gratuity limit and waffly the numbering formula are accepted, retiring employees and their families may get much increasingly financial benefits than the current system. However, at present only a maximum limit of Rs 25 lakh is workable and any transpiration will require government approval.
