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7th CPC increased Gratuity Ceiling limit – 20 lakh from 1.1.2016

September 21, 2024 admin 42 Comments

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.

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Filed Under: 7th Central Pay Commission, 7th CPC Report, Gratuity

Comments

  1. surendra kumar tak says

    August 24, 2022 at 5:07 pm

    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.

    Reply
    • M.K.KUMAR says

      August 26, 2022 at 10:48 pm

      Rs.20 lakh is maximum amount, not for all minimum.

      Reply
  2. Kulvinder Singh says

    May 1, 2019 at 8:58 am

    I retired from Haryana govt. on 31/08/2016. Should I get difference of gratuity

    Reply
  3. Sourabh says

    April 4, 2018 at 7:37 am

    I retired on 31.01.2016, when will I get the remaining gratuity amount of 10 lacs?

    Reply
  4. Pareschandra Ray says

    March 30, 2018 at 8:09 pm

    I RETIRED FROM BANK AS A OFFICER ON 31-01-2017, SHOULD I GET DIFF. OF GRATUITY.

    Reply
  5. vinayagamoorthi says

    February 10, 2018 at 10:30 am

    Rs 20 lakh Gratuity limit Govt order for public sector employees from 01.01.2016. is issued or not. Please clarify.

    Reply
  6. ASIT MUKHOPADHYAY says

    December 29, 2017 at 9:17 pm

    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.

    Reply
  7. Asit mukhopadhyay says

    December 22, 2017 at 12:03 am

    I retired on supn on 31 12 2015an. may I be eligible for 20 lakh max as retd grstuity as per cpc.

    Reply
  8. Mahesh says

    November 6, 2017 at 7:43 pm

    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

    Reply
  9. Md Tariqul Hussain. says

    September 13, 2017 at 8:49 pm

    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 .

    Reply
  10. RAMAN KUMAR THAPA says

    July 28, 2017 at 1:57 pm

    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.

    Reply
  11. A R BASU says

    June 16, 2017 at 12:06 pm

    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.

    Reply
  12. praveen kumar chopra says

    June 8, 2017 at 12:19 am

    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.

    Reply
  13. C.B.Isaac says

    April 20, 2017 at 12:00 pm

    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

    Reply
  14. BBKochhgavay says

    March 14, 2017 at 10:33 pm

    I retired from SAIL on 31.08.16. Will I get revised gratuity arrear .

    Reply
  15. NKS says

    March 10, 2017 at 1:05 am

    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.

    Reply
  16. CN Mahto says

    March 5, 2017 at 9:22 am

    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.

    Reply
  17. Prof. Vijayaragavan says

    February 20, 2017 at 9:30 pm

    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.

    Reply
  18. A VIDYASAGAR says

    January 30, 2017 at 10:24 am

    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

    Reply
  19. Pp shukla says

    January 22, 2017 at 2:06 pm

    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.

    Reply
  20. satish bhardwaj says

    January 16, 2017 at 3:09 pm

    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..

    Reply
  21. m revathy sriram says

    January 16, 2017 at 11:44 am

    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

    Reply
  22. Rajesh kumar Gupta says

    November 13, 2016 at 11:50 pm

    what will be the gratuity limit for bank employees and from which date it will be effective?

    Reply
  23. Uttam says

    November 5, 2016 at 10:15 am

    Gratuity celling for PSU will increase
    At par central government employees
    And date of effect

    Reply
  24. MSRao says

    October 21, 2016 at 12:14 pm

    Kindly appraise us the status of amendment to GRATUITY ACT and it’s effective date.

    Reply
  25. Prafulla Kumar Nayak says

    October 5, 2016 at 4:52 pm

    Amendment notification of gratuity act needed for banking sector employees to get increased gratuity. What is the progress

    Reply
  26. Anil kumar goyal says

    October 4, 2016 at 11:35 am

    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

    Reply
  27. S.Sridharan says

    October 1, 2016 at 12:05 pm

    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.

    Reply
  28. Krishna Murari Pathak says

    September 24, 2016 at 9:13 pm

    Whether LIC employees retiring w.e.f.01.01.2016 will be benefitted from the enhancement of ceiling ?

    Reply
  29. narendra singh says

    September 24, 2016 at 5:23 pm

    I retired on 31.03.2016 from nationalized bank after serving 35yrs3months 14days. Pl clarify whether I am eligible for enhance gratuity benefit. Narendra

    Reply
  30. Krishna kant says

    September 23, 2016 at 6:03 pm

    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?

    Reply
  31. Suresh Ahuja says

    September 23, 2016 at 5:35 pm

    Has the Govt issued any notification accepting the max.limit of gratuity payable under Gratuity Act 1972 to Rs. 20 lakhs ?

    Reply
  32. Kalyan das says

    September 17, 2016 at 9:14 pm

    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.

    Reply
  33. MSRao says

    September 4, 2016 at 10:32 pm

    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.

    Reply
  34. Ashok Kumar Verma says

    August 27, 2016 at 5:50 pm

    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.

    Reply
  35. Umesh Singh says

    August 12, 2016 at 1:24 am

    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.

    Reply
  36. KUSUM KUMARI says

    August 2, 2016 at 2:52 pm

    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

    Reply
  37. Kailash C Yadav says

    July 27, 2016 at 8:20 am

    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

    Reply
  38. Pradeep singh says

    February 23, 2016 at 3:24 pm

    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?

    Reply
  39. ANSHUMAN says

    February 4, 2016 at 10:09 pm

    Dear sir, you are retiring safely from army . Is this not a big reward for life than 20 Lakhs

    Reply
  40. subbarao p.c says

    January 30, 2016 at 7:37 pm

    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 ..

    Reply
  41. J N Yadav says

    December 12, 2015 at 9:23 pm

    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…..

    Reply

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