Gratuity Ceiling limit Increased to 20 lakh from Jan 2016
The 7th Pay Commission recommends increasing the ceiling of gratuity from ₹10 lakh to ₹20 lakh, effective from 01.01.2016. The Department of Pension and Pensioners Welfare suggests indexing gratuity with the amount of DA admissible at the time of retirement. The Commission agrees and also recommends increasing the ceiling on gratuity by 25 percent whenever DA rises by 50 percent.
Enhancement in the Gratuity Ceiling and its Indexation
The Commission recommends enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh from 01.01.2016.
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.
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.
surendra kumar tak says
i retd from ag. uni on 31/12/2016 my date of birth is 01/01/1957 rajathan govt.orders for 20 lac.gratuity from 01/01/20217.if any orders in my favour kindly intimate me.
M.K.KUMAR says
Rs.20 lakh is maximum amount, not for all minimum.
Kulvinder Singh says
I retired from Haryana govt. on 31/08/2016. Should I get difference of gratuity
Sourabh says
I retired on 31.01.2016, when will I get the remaining gratuity amount of 10 lacs?
Pareschandra Ray says
I RETIRED FROM BANK AS A OFFICER ON 31-01-2017, SHOULD I GET DIFF. OF GRATUITY.
vinayagamoorthi says
Rs 20 lakh Gratuity limit Govt order for public sector employees from 01.01.2016. is issued or not. Please clarify.
ASIT MUKHOPADHYAY says
Asit mukhopadhyay says
December 22, 2017 at 12:03 am
I retired on supn on 31 12 2015 AN. May I be eligible for 20 lakh max as retirement gratuity as per cpc.
Asit mukhopadhyay says
I retired on supn on 31 12 2015an. may I be eligible for 20 lakh max as retd grstuity as per cpc.
Mahesh says
Sir, one persion retired after 01.01.2016 and before 30.09.2017, as per the enhanced gratuity ceiling from 10lk to 20 lk. The dif. Amount of arrear Who has eligible or not
Md Tariqul Hussain. says
I retired on 30th november 2016. At the time of retirement my basic pay was Rs. 64100.00 Please inform me how much gratuity should i receive? total service length was 41years 5 months .
RAMAN KUMAR THAPA says
Dear Sir,
1. Arrears with regards to enhancement of Gratuity would be paid to the pensioners those retired after 01.01.2016 or otherwise.
2. Likely date of payment of arrears.
A R BASU says
A.R. Basu
I am going to retire from Central Govt. on 31-7-2017. My Gratuity comes to Rs.20 lakh. Whether the amount above Rs.10 lakh is taxable . Please clarify.
praveen kumar chopra says
I have retired from a nationalised bank as on 31.12.2016 . We have come to know that max amount of gratuity stands increased to 20 lakh. plz clarify when this is going to be implemented in public sector banks and when we can hope of getting the balance amt i.e 20 lakh – gratuity amount already paid. Thanks.
C.B.Isaac says
I have retired as VRS from HMT watch factory as on 29th feb 2016. so am i eligible for new gratuity of Rs 20 lakhs. please clarify in this regard
BBKochhgavay says
I retired from SAIL on 31.08.16. Will I get revised gratuity arrear .
NKS says
i retired from state bank of india on 31.12.2016. am i eligible for gratuity at revised limit of rs. 20 lacs. Please comment.
CN Mahto says
I have retired from coal India Ltd. on 31st December 2016.,will I get enhanced limit of gratuity ie R’s 20lakh as CIL is a public sector company.
Prof. Vijayaragavan says
I was working as associate professor in government aided college in Tamil nadu & retired from service on 30 June 2016. Got settlement of 10 lakh gratuity. Am I eligible for getting enhanced gratuity 20 lakhs? Any notification issued by Govt of Tamil nadu in this regard.
A VIDYASAGAR says
I have retired from the Bank on 30 th June 2016 .But my Gratuity was calculated with Rs 10.00 lakh as ceiling When the Enhanced amount of rs 20 lakhs will be effected. Why RBI employees ceiling was fixed at Rs 18.00 lakhs . Any body taken up the issue legally or thro retired associations
Pp shukla says
I was retire on 30.04.2016 from a bank.whether I will get enhanced gratuity I.e. 10 to 20.new notification will be effected to me or not.when bank will issue new notification.
satish bhardwaj says
what will be gratuity limit for bank employee.and from which date it will effective.i retired from bank as on 31/05/2016.wheather i will get difference of gratuity payment..
m revathy sriram says
the require gazztte notification for increasing the maximum amount payable from 10 lakhs to 20 ;lakhs has not been issued so far
it is long over due
hope and trust it will be isuued soon enough
dr ma revathy sriram
Rajesh kumar Gupta says
what will be the gratuity limit for bank employees and from which date it will be effective?
Uttam says
Gratuity celling for PSU will increase
At par central government employees
And date of effect
MSRao says
Kindly appraise us the status of amendment to GRATUITY ACT and it’s effective date.
Prafulla Kumar Nayak says
Amendment notification of gratuity act needed for banking sector employees to get increased gratuity. What is the progress
Anil kumar goyal says
What is the progress of A Spl notification which is required for banking sector with President’s approval.to amend gratuity from 10 lacks to 20 lacks
S.Sridharan says
Previous amendment to gratuity from 3.5 lacs to 10 lacs was effective in banking sector from 24.05.2010 even though it was amended from 01.01.06. A Spl notification is required for banking sector with President’s approval.
Krishna Murari Pathak says
Whether LIC employees retiring w.e.f.01.01.2016 will be benefitted from the enhancement of ceiling ?
narendra singh says
I retired on 31.03.2016 from nationalized bank after serving 35yrs3months 14days. Pl clarify whether I am eligible for enhance gratuity benefit. Narendra
Krishna kant says
If an bank officer/manager is retired in the month of june _2016, how much gratuity is payble ? It would be 10 or 20 lac?
Suresh Ahuja says
Has the Govt issued any notification accepting the max.limit of gratuity payable under Gratuity Act 1972 to Rs. 20 lakhs ?
Kalyan das says
I retired from national insurance co.ltd a govt of india undertaking.on 3oth sept.. 2015
Whether i am eliginle to get the enhanced limit benefit.
MSRao says
Myself retired from SBI as on 31.08.2016, employer has released Rs.10 lacs as gratuity. Since the limit has been enhanced Rs
20 lacs as approved by the Cabinet Committee, is there any chance of getting arrears as these rules were made applicable to Central Government employees as from 01.01.2016. Kindly opine on this issue for a number of employees in banking industry.
Ashok Kumar Verma says
Ashok Kumar Verma AGM(BSNL) says…
Sir I have been retired from BSNL in July 2016 ,As per 7th pay report will I get the revised gratuity of 20 Lacs instead of 10 Lac kindly clarify it. The same terms & conditions may be applicable to BSNL employees also.
Please reply.
Umesh Singh says
Sir I am working in gramin bank ( Regional Rural Bank ) .I want to know that Gratuity limit of 20 lakh i will get or not.
KUSUM KUMARI says
Sir I am BSNL employee and retiring in OCTOBER 2016 ,till my retirement 7th pay may not be started in BSNL.for their employee .Central Govt declared gazette notification on 26 th July 2016 and clarified that all benefits will be given from 1 st 2016 and revised pay will start from August 2016 to central Govt employee. I want to know gratuity limit 20 lacs I will get or not . The same terms and condition of gratuity will be applicable for BSNL employee
Please clarif
Kailash C Yadav says
Sir I am state Govt. employee and retiring in August 2016 ,till my retirement 7th pay may not be started in state.for their employee .Central Govt declared gazette notification on 26 th July 2016 and clarified that all benefits will be given from 1 st 2016 and revised pay will start from August 2016 to central Govt employee. I want to know gratuity limit 20 lacs I will get or not . The same terms and condition of gratuity will be applicable for state Govt employee
Please clarify
Pradeep singh says
With just a day’s difference
a soldier suffers for 10lakh rupees.
This is grave injustice to soldiers who retire just few months before the 7cpc.
This matter needs to be addressed,
so the soldiers dont feel cheated.
7th cpc stated gratuity should increase by 25% Whenever Da increases by 50%.
so dont u think its injust for retiree just before few months to get only 10lakh?
ANSHUMAN says
Dear sir, you are retiring safely from army . Is this not a big reward for life than 20 Lakhs
subbarao p.c says
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 ..
J N Yadav says
I am retiring on 31st Dec 2015 hence my gratuty would only be 10 lacs where another person in the same rank on 1st Jan 2016 would get gratuty of 20 lacs…………is this justified………will the pay commission consider this anmoly in gratuty and recommend increase in gratuty in a phased manner I.e increase of 1.lac rupee in gratuty after 1st Jan 2006 per year……….In which case instead of 10 lac I shall get 20 lac and there will be no heart burning…..