Gratuity Calculation

Gratuity Calculation

 

In India, the Maximum ceiling for payment of Gratuity to Government employee was Rs. 3.5 Lakhs and this was raised to Rs 10 lakhs.

The Gratuity 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 16½ 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.

In the Private establishments, the ceiling is only Rs. 3.5 lakhs and a bill has been introduced in the Parliament to increase the ceiling limit to Rs. 10 lakhs, which will definitely help the working community.

 

 

This entry was posted in INDIAN NEWS and tagged , , , , . Bookmark the permalink.

4 Responses to Gratuity Calculation

  1. Pingback: gratuity calculation in India | gratuity | gratuity act | gratuity …

  2. Pingback: gratuity calculation in India | gratuity | gratuity act | gratuity … | Drakz Free Online Service

  3. emt training says:

    What a great resource!

  4. CJG says:

    It is most unfortunate that we the retirees of Central GOVT. CPSU’s working under the guidelines of the DPE have come in for a rude shock. The Govt. initially approved the 2nd pay revision on 26.11.2008 by approving the enhanced gratuity of Rs.10 lakhs w.e.f. 01.01.2007. What made them change their minds? If the 6th CPC gratuity is to be implemented from 01.01.2006, then why this step motherly treatment to us? Are’nt we paying the same taxes as them? Hon. PM and FM, please look into this aspect as we have become easy targets and have lost out on Rs.6.5 lakhs which we were eagerly looking forward to.

Comments are closed.