7th Pay Commission Committee recommendations on Gratuity Ceiling for Central Government Employees
All Central Government employees should know about the eligibility criteria of Gratuity. There are commonly four types of Gratuity in Central Government Services. 1. Service Gratuity, 2. Retirement Gratuity, 3. Death Gratuity and 4. Residuary Gratuity.
7th Central Pay Commission recommended to enhance the Gratuity ceiling from Rs.10 lakh to Rs.20 lakh and the Central government had accepted the recommendation. And also the committee recommended to increase the Gratuity by 25 percent whenever Dearness Allowance rises by 50 percent.
The committee also recommended to revise the structure of payment of Death Gratuity as split the long span of 5 years to 20 years service period. The span has splitted in two segments as 5 years to 11 years and 11 years to 20 years.
Terminal Gratuity
The commission also suggested to Short Service Commissioned Officers will be allowed to exit Armed Forces any time between 7 and 10 years of service with a terminal gratuity equivalent of 10.5 months of reckonable emoluments.
Before revision of Death Gratuity Table
| 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 |
Revised Death Gratuity Table
| 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 |
Latest Top Updates on Gratuity
- 7th CPC increased Gratuity Ceiling limit – 20 lakh from 1.1.2016 September 21, 2024Read more...
- Benefit of Gratuity to CG Employees Covered under National Pension System (NPS) June 15, 2023Read more...
- Gazette Notification on Gratuity: Amount, Effective Date and Maternity Leave June 7, 2023Read more...
- Amount of Pension which was originally commuted shall only be deducted from the Revised Pension – DoPPW October 31, 2022Read more...
- Commuted Amount of Pension is Not Required to be Deducted from Family Pension – DoPPW October 31, 2022Read more...
- CG employees retired during the period from Jan 2020 to June 2021: Calculation of Gratuity and Leave Encashment September 9, 2021Read more...
- Loss of Gratuity and Leave Salary Due to Freezing of Dearness Allowance October 10, 2020Read more...
- Release Gratuity to retired employees of BSNL without any delay July 11, 2020Read more...
- Gratuity – Calculation, Ceiling, Qualifying Service and Rates September 17, 2019Read more...
- Revision of Gratuity and Severance Amount to GDS July 24, 2019Read more...
- 7th Pay Commission Committee recommendations on Gratuity July 23, 2019Read more...
- Stoppage of Retirement and Death Gratuity to the NPS Subscribers May 28, 2019Read more...
- IT Exemption for Gratuity upto 20 Lakhs – Gazette Notification March 15, 2019Read more...
- IT Exemption on Gratuity – 20 lakhs w.e.f. 29.3.2018 March 12, 2019Read more...
- Brief on Payment of Gratuity (Amendment) Act, 2018 May 31, 2018Read more...
- Gratuity ceiling raised to 20 Lakhs w.e.f. 29.3.2018 March 30, 2018Read more...
- Upper Ceiling on Gratuity 20 Lakhs March 24, 2018Read more...
- UFBU writes to Finance Minister regarding Gratuity Ceiling December 11, 2017Read more...
- Non-Payment of Gratuity and Pay Revision Arrears by HEC March 15, 2017Read more...
- Retirement Gratuity Ceiling hiked to Rs.20 lakh for bank employees and officers March 7, 2017Read more...
Leave a Reply