New Delhi, Jul 21 (PTI) The Delhi government has increased the gratuity limit for DVB pensioners to Rs 25 lakh from Rs 20 lakh with effect from January 1, 2024, Power Minister Ashish Sood said in a statement on Monday.

This will immediately benefit around 500 pensioners, the minister said.

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Gratuity is an amount paid by an organisation to its employees at the time of their retirement as a mark of appreciation for work rendered by them.

The proposal to hike gratuity limit to Rs 25 lakh was discussed by the power department. It has now been submitted for consideration and ratification by the Board of Trustees, the statement said.

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Sood said the hike will cost the government an estimated Rs 16 crore for the period January 1, 2024 to March 31, 2025.

It was a long pending demand of the Delhi Vidyut Board (DVB)-Employees Terminal Benefit Fund (2002) pensioners.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)