Big news for state government employees of Bihar. During the Assembly’s Question Hour on Monday, Minister-in-charge Nitish Mishra clarified that even though the central government raised the gratuity for its employees from 20 to 25 lakhs, the state government isn’t required to adopt the Centre’s policies. He emphasized that there are distinct differences between the state and central government policies, and the state has its own set of rules.
This question was brought up by Jamalpur MLA Ajay Kumar Singh, who pointed out that during the pay revision under the Seventh Pay Commission, the gratuity was initially set at Rs 20 lakh, with a recommendation to increase it to Rs 25 lakh if the dearness allowance reached 50 percent or more.
Despite the central government implementing the new gratuity amount, the state government has yet to adopt this change for its employees. The Finance Department has already passed a resolution on this matter, and there was an agreement made with the state employees. The Minister confirmed that the state government is providing the benefits of the Seventh Pay Commission to its employees. The cap on gratuity for central employees has been raised to Rs 25 lakh.
This new limit has been in place since January 1, 2024. Previously, the limit was set at Rs 20 lakh. With this increase, government employees will now receive a higher gratuity amount upon retirement or in the event of death.