Rs.19 Bn gratuity payment put govt. in a tight spot

The government is currently struggling to pay Rs.19 billion as gratuity for retired state sector employees, a senior Finance Ministry official said.

He said gratuity payments have not been made since April last year. About 18,000 newly retired employees (who had to retire following the government’s decision to lower the retirement age) too are waiting for their gratuity payments. 

A senior official at the Pensions Department said daily large numbers of retired persons are arriving at the Department inquiring about their gratuity payments. 

“Some have their children's’ weddings planned or higher education expenses, while others say they have loan installments to be paid and housing loans. There are about 700-800 complaints but without funds released we are unable to pay them,” he said. 

The government is considering the possibility of paying the gratuity for at least a section of the retired employees. However, with even a deal with the International Monetary Fund (IMF) yet to be finalised, the official admitted this too will be difficult.