According to the recent office order, EPFO has increased the maximum limit of Retirement gratuity and death gratuity by 25% to Rs. 25 Lakh from the existing Rs. 20 Lakh. This adjustment is in response to the revision of Dearness Allowance payable to Central Government Employees, which has risen to 50% of the basic pay effective from 01.01.2024.
Key Points:
- Gratuity Enhancement: EPFO’s decision results in a significant increase in the maximum limit of retirement and death gratuity, benefiting Central Government Employees.
- Dearness Allowance Impact: The rise in Dearness Allowance triggers the adjustment in gratuity limits, reflecting the commitment to provide adequate retirement benefits in line with economic conditions.
- Compliance with Guidelines: EPFO’s action is consistent with the directives laid out in the relevant OM dated 04.08.2016, ensuring adherence to statutory regulations governing gratuity provisions.
Employees’ Provident Fund Organisation
Ministry of Labour and Employment, (Govt. of India)
Order No. HRD-1/8/2024/Misc.-Circulars-Part(1)/1004 Date- 30-04-2024
OFFICE ORDER
Subject: Enhancement of gratuity on account of Dearness Allowance rising by 50%-reg.
As per para 6.2 of the OM no. 38/37/2016-P&PW(A)(1) dated 04.08.2016 issued by Department of Pension and Pensioners’ Welfare, Ministry of Personnel, Public Grievances and Pensions, Government of India, the maximum limit of Retirement gratuity and death gratuity shall be increased by 25% whenever the dearness allowance rises by 50% of the basic pay.
2. Accordingly, the maximum limit of Retirement gratuity and death gratuity shall be increased by 25% to Rs. 25 Lakh from existing Rs. 20 Lakh on account of revision of Dearness Allowance payable to Central Government Employees to 50% of the basic pay w.e.f. 01.01.2024, subject to other conditions mentioned in the DoP&PW OM dated 04.08.2016.
(This has the approval of ACC(HQ) HR)
(SK Suman)
Additional Central PF Commissioner (HR)
Copy for information to:-
1. PPS to CPFC
2. All EC/CBT Members
3. PPS to FA & CAO, CVO, ACC (HQ)
4. All Addl. Central PF Commissioners (HQ) & ACC (Zones) including ACC (ASD)
5. All Regional PF Commissioners
6. All DD (Vigilance)/ZAPs
7. All PPS, PA and SO in Head Office
8. RPFC, IS Division for web circulation
9. Secretary General, EPF Officers’ Association
10. Secretary General, AIEPF Staff Federation
11. Secretary General, AIEPF SC/ST Federation
12. Secretary General, AIEPF Employees’ Sangh
13. Hindi Section for Hindi Version
14. Guard file
(Saurabh Tripathi)
Regional PF Commissioner (HRD-I)
