Eighth Pay Commission weighs gratuity changes for central government employees
The Eighth Pay Commission is looking to shake up how gratuity works for central government employees.
Following the June 15, 2026 memorandum deadline, they're weighing proposals to boost the maximum payout and update the calculation formula, which could mean a bigger financial cushion for retirees.
Employee groups propose 75L gratuity cap
Employee groups have pitched raising the gratuity cap (some want it as high as 75 lakh rupees) and tweaking how payouts are calculated, like calculating it based on 25 working days instead of 30 or giving one-half a month's pay per six months of service.
The goal? To make post-retirement benefits fairer and more generous, so long-serving employees feel their years of work are truly valued.
The final call will come after the Commission reviews all practical details.