In a move aimed at improving employee benefits, the Odisha government has raised the gratuity limit for its state employees. The government has approved an increase in the Death-Cum-Retirement Gratuity (DCRG) limit from Rs 15 lakh to Rs 20 lakh.
This enhancement will be applied retrospectively from 1 January, 2024, benefiting all regular state-government employees.
The decision comes after several Service Associations in the state urged the government to raise the ceiling on the gratuity benefits for state employees. Furthermore, this move aligns with Odisha’s gratuity structure more closely with the Central government’s recent changes to the Retirement and Death Gratuity under the Central Civil Services (Pension) Rules, 2021. This rule also became effective from 1 January, 2024.
The revision is expected to bring significant financial relief to retiring employees and the families of deceased employees, reflecting the state’s commitment to enhancing employee welfare.
The Death-Cum-Retirement Gratuity (DCRG) limit ensures that employees are rewarded for their long service with a lump sum payment, which can provide a substantial financial cushion. The increase in the DCRG limit over time reflects inflation adjustments and serves as an important retirement benefit, offering stability and peace of mind for employees and their dependents. Additionally, it incentivises long-term employment, fostering loyalty to government service.
