The Employees’ Provident Fund Organisation has no plans to provide the increase in retirement/death gratuity to its employees as previously circularised.
Recently, the EPFO stated in a notice released on May 7, 2024, that the EPFO’s notice dated April 30, 2024, which discussed the increase in the gratuity limits from ₹20 lakh to ₹25 lakhs, has remained ‘in abeyance.’
The postponement of the gratuity hike followed the Union Cabinet’s approval in March 2024 for a 50% hike from 1% in April 2021 in the Dearness Allowance—a key component of the Central Government employees and pensioners’ salary and pension.
However, as per the existing rules, the retirement and death gratuities are not enhanced presently; they are increased only by 25% when the DA is increased by 50% of the basic pay. However, the recent move on the EPFO has put a brake on this automatic status quo revision, leaving government employees and pensioners dejected.
Adding this to the current DA and DR will add another ₹ 12 868 00 to the overall salary bill. Currency 72 crores per year on the exchequer would be returned to 49. Central Government employees include 18 lakh while the count is 67 for Armed Forces. 95 lakh pensioners.
One can rightly say that the government’s decision to increase the DA was based on the recommendations of the 7th Central Pay Commission; however, the decision to delay the gratuity hike has enraged the concerned employees.
The unions and employee associations will object to the decision since it would have allowed them to increase the financial benefits the retired and deceased government employees receive.
