Monday, 29 August 2016

WHAT IS MEANT BY DEATH GRATUITY AND RETIREMENT GRATUITY

Date : 29.8.2016

WHAT IS MEANT BY DEATH GRATUITY AND RETIREMENT GRATUITY

Note: Below reference taken from 6th CPC.

Retirement Gratuity

This is payable to the retiring Government servant. A minimum of 5 years qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month�s Basic Pay plus Dearness Allowance drawn before retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable is 16� times the Basic Pay, subject to a maximum of Rs. 10 lakhs.

Death Gratuity

This is a one-time lump sum benefit payable to the widow/widower or the nominee of a permanent or a quasi-permanent or a temporary Government servant, including CPF beneficiaries, dying in harness. There is no stipulation in regard to any minimum length of service rendered by the deceased employee. Entitlement of death gratuity is regulated as under:

Qualifying ServiceRate
Less than one year2 times of basic pay
One year or more but less than 5 years6 times of basic pay
5 years or more but less than 20 years12 times of basic pay
20 years of moreHalf of emoluments for every completed 6 monthly period of qualifying service subject to a maximum of 33 times of emoluments.
Maximum amount of Death Gratuity admissible is Rs. 10 lakhs w.e.f. 1.1.2006

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