The government of India has increased the Dearness Allowance (DA) for central government employees from 46% to 50%, providing additional financial support to meet the rising cost of living.
In addition to the increase in DA, the gratuity limit for retirement and death has also been raised by 25%, from Rs 20 lakh to Rs 25 lakh, effective from January 1, 2024.
Gratuity is the amount of money that an employer pays to an employee in recognition of their service during their tenure with the company, and is typically distributed upon retirement or termination of employment after five years of service.
The Tips Payment Act of 1972 covers employees in sectors such as mining, factories, oil fields, forest areas, companies, and ports where 10 or more employees work, ensuring that gratuity is provided as a form of recognition for their service.
Any organization where 10 or more employees have worked for a day or more during the last 12 months is subject to the provisions of the Tips Payment Act, with payments being made by the employer to recognize the employee’s contributions.. Read More Here
