Rajasthan Government Increases Gratuity Limit for Employees Starting January 2024
Rajasthan Government's Gratuity Increase Announcement
Rajasthan Government Enhances Gratuity Limit Effective January 1, 2024
Rajasthan Update: In a significant move for its workforce, the Rajasthan government has announced an increase in the gratuity limit, which will take effect from January 1, 2024. This change means that employees retiring after this date will be eligible for gratuity benefits up to Rs 25 lakh. The official order was issued on April 1, 2025.
Previously, the Bhajanlal administration had raised the gratuity cap from Rs 20 lakh to Rs 25 lakh, but the implementation date was set for April 1, 2024. The recent amendment allows for an earlier start date of January 1, 2024.
Beneficiaries of the Gratuity Increase
Who Will Benefit from the New Gratuity Limit?
Employees who retire between January 1, 2024, and March 31, 2024, will directly benefit from this decision. The increased gratuity limit aligns with the benefits provided to central government employees, allowing state employees to receive an additional gratuity of up to Rs 5 lakh.
Official Announcement by Deputy CM
Deputy Chief Minister Bairwa's Statement
Following a cabinet meeting on March 8, Deputy Chief Minister Premchand Bairwa confirmed that the Bhajanlal government had included this announcement in the budget, which is now being put into action. This adjustment will ensure that state employees receive gratuity benefits similar to those of their central government counterparts. The financial impact of this decision is expected to add approximately Rs 24 crore to the state treasury for employees retiring in the first quarter of 2024.
Understanding Gratuity
What is Gratuity?
Gratuity is a retirement benefit governed by the Payment of Gratuity Act of 1972. Employees who have served for over five years in any organization are entitled to receive gratuity. This benefit is applicable upon job termination, retirement, or in the event of an employee's death. It is mandatory for organizations with ten or more employees to provide gratuity. In cases of an employee's death, the gratuity amount is paid to their designated nominee.