Odisha govt hikes cessation benefit for temporary employees to ₹2.5 lakh

Prameyanews English

Published By : Chinmaya Dehury | June 26, 2025 7:01 PM

Mohan Majhi

Bhubaneswar, June 26: In a significant move ahead of the Rath Yatra festival, Odisha Chief Minister Mohan Charan Majhi has approved a proposal to increase the one-time cessation benefit for temporary employees in the state. 

This decision is expected to benefit thousands of workers across various departments, according to a statement from the Chief Minister's Office (CMO).

Previously, temporary employees received a one-time cessation benefit of ₹1.5 lakh upon the end of their service (Cessation of Service). However, with the new decision, this amount has been increased to ₹2.5 lakh.

According to the Chief Minister’s directive, all temporary employees who leave service will now be entitled to a one-time payment of ₹2.5 lakh. Even those who are absorbed into regular posts but have not completed five years of service will also be eligible for the same amount as a one-time grant.

For employees who have served in regular positions for more than five years, the minimum gratuity upon retirement will now be ₹2.5 lakh.

In addition, the government has decided that this one-time gratuity amount will be increased by 10% every two years. Importantly, this incremental increase will not require separate approval from the Finance Department. Individual departments will have the authority to implement the 10% hike every two years on their own, the statement said.

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