💰
Department of Public Enterprises
Gratuity Clarification 2026
Gratuity Clarification 2026
🏦
Gratuity Limit ₹20 Lakh
Mandatory for CPSEs (Affordability No Excuse)
Gratuity Limit ₹20 Lakh
Mandatory for CPSEs (Affordability No Excuse)
Gratuity Limit ₹20 Lakh Now Mandatory: Finance Ministry Clarifies Rules for CPSE Employees
- Old Limit: ₹10 Lakh
- New Limit: ₹20 Lakh
- Effective Date: 29 March 2018
- Condition: Mandatory (Irrespective of Loss/Profit)
The “Affordability” Excuse Ends
The Department of Public Enterprises (DPE) has issued a consolidated guideline that puts an end to the confusion. Many PSUs (CPSEs) were denying the enhanced Gratuity of ₹20 Lakh citing “losses” or “affordability”.
✅ The Final Verdict
From 29.03.2018 Onwards:
The payment of Gratuity up to ₹20 Lakh is MANDATORY for all CPSEs.
• It is a statutory right under the Amended Gratuity Act.
• The company cannot say “We don’t have money”.
Who Benefits?
This order applies to:
👷 Employees
All Executives, Non-Unionised Supervisors, and Workmen of Central Public Sector Enterprises (CPSEs).
📅 Retirees
Anyone who retired on or after March 29, 2018, and was paid less Gratuity can now claim the arrears.
Difference from 7th Pay Commission
Central Govt Employees got the ₹20 Lakh limit from 01.01.2016. However, for CPSE employees, the date is different.
| Category | Effective Date for ₹20 Lakh |
|---|---|
| Central Govt Employees | 01.01.2016 |
| CPSE Employees | 29.03.2018 |