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 |
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