Latest on DA hike: 25% increase in gratuity due to dearness allowance hike kept on hold; here’s why

The circular of April 30, 2024, which increased the maximum retirement and death gratuity by 25% as a result of an increase in dearness allowance (DA), has been stopped, according to a recent announcement from the Ministry of Labour & Employment. Following a 4% DA rise in March 2024, the original circular raised the gratuity ceiling from Rs. 20 lakh to Rs. 25 lakh, bringing the total DA to 50% of base salary. In addition, the automatic modification of allowances such as the Hostel Subsidy and Children's Education Allowance by 25% resulted from this DA boost. However, citing the Office Memorandum from the Ministry of Personnel, Public Grievances and Pensions, the Ministry of Labour & Employment's circular dated May 7, 2024, promptly put the gratuity increase on hold. There is uncertainty as a result of this suspension.