Payment of Gratuity Act, 1972, provides financial benefits to employees who have completed five years or more in an organisation at retirement.

The new pension plan may replicate the Andhra Pradesh model, where the employees get guaranteed 40-50 per cent of their last drawn basic salary as a pension.

The Central government revises the Dearness Allowance (DA) for its employees in January and July every year to mitigate the impact of inflation.