Modi Govt's Big Gratuity Boost: ₹20 Lakhs Mandatory for CPSE Employees from March 2018

• The Modi government has clarified gratuity rules for Central Public Sector Enterprises (CPSEs) employees, making ₹20 lakhs mandatory.
• The Department of Public Enterprise (DPE) under the Ministry of Finance issued consolidated clarification on gratuity limits and eligibility.
• For CPSE employees who retired on or after March 29, 2018, gratuity up to ₹20 lakhs is mandatory, regardless of the company's financial status.
• The Payment of Gratuity (Amendment) Act, 2018, removed the fixed gratuity amount, allowing the government to notify limits, which was set at ₹20 lakhs.
• The 7th Pay Commission's gratuity increase to ₹20 lakhs applies only to central government employees, not CPSE employees.

Why It Matters: CPSE employees retiring post-March 2018 are legally entitled to ₹20 lakh gratuity, irrespective of company finances.