The Department of Pension and Pensioners’ Welfare (DoPPW) last week enhanced the maximum limit of retirement and death gratuity for central government employees from Rs 20 lakh to Rs 25 lakh on reaching the dearness allowance (DA) rates to 50 per cent.

DoPPW’s June 1, 2024, notification is in line with the recommendations of the Seventh Central Pay Commission in August 2016 relating to revision of pension, gratuity, commutation of pension, family and disability pension, ex-gratia lump-sum compensation, etc.

Also Read: 5 Steps To Live Longer Like Amitabh Bachchan Showed In The Movie “102 Not Out”

As per the latest circular, the maximum limit of retirement gratuity and death gratuity would be increased by 25 per cent from Rs 20 lakh to Rs 25 lakh for central government employees on reaching the dearness allowance rates to 50 per cent.

Regarding the enhancement of dearness allowance rates, the Department of Expenditure had already issued instructions on March 12, 2024, in which it raised the rates from the existing 46 per cent to 50 per cent of the basic pay, effective January 1, 2024. In a follow-up to that and after due consultation with stakeholders, DoPPW has revised the maximum retirement and death gratuity limits as per the pension rules 2021 and the CCS (payment of gratuity under NPS) regulations 2021. Note that the retirement and death gratuity benefits depend on the last basic pay drawn and the length of service rendered by the employee.

New Software To Update PF Member Profile

In another development, the Employees’ Provident Fund Organisation (EPFO), on June 1, announced a new software functionality to update or correct PF member profiles online. The circular from the Ministry of Labor and Employment further states that some 7.5 crore members are actively contributing to the provident fund, and pension and insurance schemes each month.

Also Read: How Does A Moratorium Period Differ From Waiting And Free-Look Policy In Insurance?

In the first two months of the current financial year alone, it added that around 87 lakh claims had been settled in the form of advances for housing, post-matriculate education of children, marriage, illness, final PF settlements, pension, insurance, etc. Regarding the software update, it said that a robust computer software application has been put in place to validate member data in the Universal Account Number (UAN), allow consistency of the data in EPFO records, ensure seamless online services and avoid any risk of erroneous payments or frauds.

The software application will enable a seamless implementation of EPFO’s standard operating process (SOP) for changing or rectifying member data, such as your name, gender, date of birth, parent name, marital status, nationality, Aadhaar, etc., online.