Latest DA boost: 25% increase in gratuity due to dearness allowance increases placed on wait; here's why.

The Employees' Provident Fund Organization (EPFO) has decided to "abeyance" the increase in retirement and death gratuity for workers, dealing a blow to individuals employed by the government and organized sector. The EPFO issued a directive last month increasing the maximum retirement benefit and death benefit by 25%, from Rs 20 lakh to Rs 25 lakh, effective April 30, 2024. A week later, on May 7, the retirement fund organization issued another circular stating that, effective immediately, the gratuity augmentation due to the increase in DA had been put on hold. The order does not specify the decision's rationale.