Now government employees will get gratuity up to 25 lakhs on retirement

Gujarat Government: The Bhupendra Patel government of Gujarat has taken two major decisions in the interest of government employees on Wednesday. The government has increased the maximum limit of retirement and death gratuity from Rs 20 lakh to Rs 25 lakh. Apart from this, the dearness allowance (DA) of government employees and pensioners has also been increased by 3 percent. These decisions will directly benefit lakhs of employees and pensioners of the state.

Retirement and death gratuity limit increased

After this decision of the Gujarat government, now the state government employees will get the benefit of gratuity at par with the central government employees. Earlier, the maximum limit of gratuity was Rs 20 lakh, which has now been increased by 25 percent to Rs 25 lakh. This new limit will apply to employees retiring after January 1, 2024.

This move of the government will increase the financial security of government employees. However, this increase will apply only to those employees who will retire from January next year. Employees who retired earlier will be paid as per the old limit.

Financial impact on the government

Increasing the gratuity limit will put an additional financial burden of Rs 53.13 crore on the Gujarat government every year. But the benefit to the employees from this decision reflects the inclusive policies of the government.

3% increase in dearness allowance (DA)

Along with increasing the gratuity limit, the Gujarat government has also announced a 3 percent increase in the dearness allowance of the state employees and pensioners. Now the employees will get 53 percent of their basic salary as dearness allowance.

The new rates of dearness allowance will be applicable from July 1, 2024. The arrears of DA from July to November will be paid with the salary of December 2024. Pensioners will be paid it in January 2025. More than 9 lakh employees and pensioners of the state will get the benefit of this decision.

Big step of the government for the employees

These decisions of the Gujarat government reflect the government's commitment towards the welfare of the employees. The increased gratuity limit and increase in dearness allowance will not only enhance the economic stability of the employees but also guarantee a better future for the employees and pensioners working in the state.

This step is a significant step towards strengthening the positive relationship between the government and the employees. Such decisions not only boost the morale of the employees but also recognize their contribution to the development of the state.