7th Pay Commission: Gratuity Payment Limit Raised To Rs 20 Lakh


New Delhi: In a positive development, the Central government has decided to increase the gratuity payment limit from the existing Rs 10 lakh to Rs 20 lakh. The Seventh Pay Commission panel had recommended the same in its report to the government.

A meeting between the Labour Ministry and representatives from central trade unions took place on February 23 in which the decision was taken.

The employees’ unions have also demanded removal of conditions on having at least 10 employees in an establishment and minimum five years of service for payment of gratuity.

Days after the Tamil Nadu government appointed a committee to look into the Seventh Pay Commission’s recommendations, Rajasthan government has followed suit.

The Vasundhara Raje-led government has formed a committee under retired IAS officer DC Samant to study the recommendations of the pay commission. The committee will submit its report to the state government within three months.

It will provide recommendations on revising the pay scale of state government examine various allowances and also estimate the financial impact of the implementation.

Retired officers of Rajasthan Accounts Service DK Mittal and MP Dixit are part of the committee. The Seventh Pay Commission recommended a 14.27 per cent hike in basic pay for government employees.

After much anticipation, the Committee of Allowances is believed to have submitted its report to the government on February 22.

The committee, under Finance Secretary Ashok Lavasa, was formed to review the recommendations of the Seventh Pay Commission.

The pay commission had recommended reducing the amount under various allowances, including the house rent allowance (HRA), besides subsuming some allowances.

According to reports, the Committee on Allowances has recommended against reducing the HRA, a decision likely to bring cheer to government employees.

The government is likely to make an announcement on allowances after the Assembly elections in five states are over.


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