Gratuity Calculation after Seventh Pay Commission

Enhancement in the Gratuity Ceiling and its Indexation

A number of representations have been received by the Commission stating that there is a need to revise the existing ceiling of ₹10.00 lakh with regard to payment of service gratuity.

7thCPC Gratuity Calculator

Analysis and Recommendations

Rule 49 and 50 of the CCS (Pension) Rules provides that a government servant is entitled to get retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the last emoluments subject to a maximum of ₹10 lakh.

The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated that the VI CPC has increased the amount of gratuity from ₹3.5 lakh to ₹10 lakh w.e.f. 01.01.2006. This amount, in the view of the department, is not commensurate with emoluments that are available to senior officers at the time of retirement. The department has suggested to the Commission that a view could be taken to index gratuity with amount of DA admissible at the time of retirement.

The Commission notes that there is merit in the argument advanced to index the ceiling on gratuity so that the benefits of the enhanced ceiling are available to personnel in a manner which is more even over a time frame. The Commission recommends enhancement in the ceiling of gratuity from the existing 10 lakh to 20 lakh from 01.01.2016. The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.

Rationalisation of Death Gratuity

The Commission has received representations pointing to a need for rationalization of current slabs for death gratuity, especially for the slab of 5 to 20 years of qualifying service in which family pensioners are stated to be placed at a disadvantageous position.

Analysis and Recommendations

As per Rule 50 of Pension Rules, the death gratuity admissible will be as follows, subject to the maximum limit prescribed for the gratuity:

Length of Service Rate of Death Gratuity
Less than one year 2 times of monthly emoluments
One year or more but less than 5 years 6 times of monthly emoluments
5 years or more but less than 20 years 12 times of monthly emoluments
20 years or more Half month of emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of monthly emoluments

The Commission sought the views of the government in this regard. Department of Pension and Pensioners Welfare stated that it had received similar demands from pensioners’ association and it feels a need for a review of the existing slabs for death gratuity.

The Commission, after examination of the matter, recommends the following revised rates for payment of death gratuity:

Length of Service Rate of Death Gratuity
Less than one year 2 times of monthly emoluments
One year or more but less than 5 years 6 times of monthly emoluments
5 years or more but less than 11 years 12 times of monthly emoluments
11 years or more but less than 20 years 20 times of monthly emoluments
20 years or more Half month of emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of emoluments

Reduction in the time period for Restoration of basic Pension

The Commission has received a number of representations requesting reduction of restoration period of commuted portion of pension from the existing 15 years.

Comments

ANOMALY IN PAYMENT OG GRATUITY

I retired on 25 December 2015 with a gratuity of 10 lac and one of my colleague is retiring on 12 February 2016 and going to get 20 lac as gratuity .. My service duration was 34 years and his will be 32 years .. so this is really unfair for me putting all my life into services .. please correct the anomaly’s of this pay commission ..

ANOMALY IN PAYMENT OG GRATUITY

I retired on 25 December 2015 with a gratuity of 10 lac and one of my colleague is retiring on 12 February 2016 and going to get 20 lac as gratuity .. My service duration was 34 years and his will be 32 years .. so this is really unfair for me putting all my life into services .. please correct the anomaly’s of this pay commission ..

gratuity difference

what will be difference of gratuity after 35 years service retirement basic 51000

Gratuity implementation

I am going to retired on October 31, 2016 after completing of 36 years service . Till date the CPC not yet declared the notification.

So I have a query, whether I am entitled for the latest gratuity limit i.e. 20 Lakh?

If suppose, our organisation is following Central Government pay-scales and rules.

What will be be the approximate gratuity amount will be ? My basic is 23080

M Y B

Gratuity calculation

I am retiring from bank's service on 30.09.2016. My basic pay is Rs 58760 & DA is Rs 26240.what will be my gratuity as per Gratuity Act & 7th pay commission recommendations. Thanks & regards, J.S.Dhall

Gratuity

am retiring from bank's service on 31.12.2016. My basic pay is Rs 60820 & DA is Rs 27673And.FPPRs1650what will be my gratuity as per Gratuity Act & 7th pay commission recommendations. Thanks & regards, BDSUMANPLrepl

Gratuity

B D Suman (not verified) on Sun, 08/07/2016 - 16:12 am retiring from bank's service on 31.12.2016. My basic pay is Rs 60820 & DA is Rs 27673And.FPPRs1650what will be my gratuity as per Gratuity Act & 7th pay commission recommendations. Thanks & regards, BDSUMAN

gratuity calculation

my present pay is 17740 plus gp 4600 is am going to retire on 30-11-2017 and completed 32 years service - what will be my gratuity amount - kindly send thru my email.

thank U

Gratuity & Pension calculations after 1.1.2016

hii this is nitesh
my father was worked in central raliway. He was retired on 31st may 2016 when he was that time his basic pay & pay band total was 16930. kindly give gratuity calculations he was get after pay commission implemented.

Gratuity payment

I retired on 31st January 2016 from a Govt of India undertaking company. I got gratuity of Rs.10 lacs. My understanding is that I will get the balance amount of gratuity. Please clarify whether my understanding is correct or not.

I was retired on 30th June

I was retired on 30th June 2016 from a nationalized bank with a gratuity of 10 lac. Now my anxiety is that whether I am entitled for the arrears from the increased amount of Gratuity of 20 lac. Please let me know.

GRATUITY

I RETIRED FROM PVT. LTD. COMPANY ON 21st OCTOBER 2016 & GOT TEN LACS AS GRATUITY WHEREAS AS PER 7th PAY COMMISSION I SHOULD HAVE GOT TWENTY LACS. MY SERVICE WITH THIS COMPANY IS 27 YEARS & BASIC IS Rs.97400/-. PLEASE ADVISE TO ENABLE ME TO TAKE UP WITH MY EMPLOYER.

Your payment of gratuity is

Your payment of gratuity is covered under Payment of Gratuity Act and its limit is Rs.10 lac at present, which you received. Till any amendments to the said Act takes
place, your payment is in order.

Hope clarified.

Entitlement of gratutity as per 7th pay commission

I have retired fromj Central Govt. Service on 29.02.2016 and was paid gratuity of Rs.10 lakhs. My revised pay as per 7th Pay commission is Rs.77900/- and I have put up 41 years 5 months of service. Please inform by email, the amount of arrears of gratuity, I should get.

gratuity

my brother death on 23-09-2014 service at near 3 years please say what gratuity 20 lacs

Gratuity

I superannuated on 30th September 2015 after putting on more than 28 years of service. I am paid Rs. 10 lakhs towards gratuity. My colleagues who retired from service on 31st January 2016 and 28th February 2017 received gratuity of Rs.20 lakhs though they put on 23 and 25 years of service. This is unfair because the amount of gratuity is to be paid on the basis of number of years service rendered as an employee. I request that the anomaly may be rectified and I may be paid the balance accordingly

Gratuity

I have already retired from my srrvice w e f 30.9.2016.From N. H. P. C. Ltd. Am I entitled for revised gratuity my service is 39 yrs

Gratuity

I have retired from Uttarbanga Kshetriya Gramin Bank w.e.f. 31.12.2016. My Basic Pay was 52950/- and DA was 25310/-. What should be my actual Gratuity amount as I have rendered 34 years and 8 months service on my retirement.

Weightage of 5 yrs in Vrs case

I have taken Vrs on 30 th September 2017 after completing 23 years from CPWD ,please confirm that weightage of 5 yrs is applicable or not in my case

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