In a key welfare ruling for the employees, Coal India Limited (CIL) has sanctioned a rise in the maximum limit of gratuity to its officers and increased the limit to 25 lakh instead of the earlier 20 lakh. The new gratuity ceiling will be applicable on October 1, 2025, which will bring a lot of financial alleviation to thousands of current and retired coal sector officers.
The ruling extends to the Coal India officers and some of the non-union supervisory staff within the company and its subsidiaries. The action, according to authorities, will help almost 17,000 officers, particularly those who are nearing their retirement. Retiring officers will get the increased gratuity amount on or after the effective date, with eligible retirees after October 1, 2025, being paid arrears as required.
Gratuity: This is a lump-sum retirement benefit provided by employers to employees as a reward based on long and continuous service. It is a significant cash buffer at the time of retirement. The gratuity ceiling increment is in accordance with the stipulated percentage of pay incremental guidelines in accordance with the current government pay increments as practiced by the government undertaking when the Dearness Allowance (DA) reaches above the 50 per cent mark. Coal India has quoted this DA threshold as one of the major reasons for revision.
The unions of employees and the association of the officers had always been insisting on equality with other central public sector enterprises, of which many already provide a gratuity cap of Rs 25 lakh. Through this revision, the Coal India officers will henceforth be equal to the employees in other PSUs, and this will boost the morale of the working personnel.
According to the sources in the company, the decision indicates the concern of the company towards its employees and recognition of the role played by the officers who have been very instrumental in maintaining the coal production and energy security of the country. Coal India is still the largest producer of coal in India and a supplier of power, steel and cement industry.
The higher level of gratuity is also likely to influence the post-retirement financial planning of the employees, especially at a time when the cost of living is increasing. The move has been seen by industry watchers as a wider trend of enhancing the retirement benefits within government-related entities.
The new gratuity ceiling of 25 lakh rupees will mean the Coal India officers will enjoy more financial security in the decades after their service, which is a big move in enhancing the benefits of the employees in the coal industry.
