Gratuity Calculator for Central Government Employees

Death, Retirement, and Service Gratuity for Central Government Employees

Retirement gratuity is calculated at the rate of half month’s emoluments for every completed six monthly
period of qualifying service. And the maximum amount of gratuity is Rs. 20 lakhs.

There are three types of Gratuity in force in Government services…

Retirement Gratuity, Death Gratuity and Service Gratuity

Retirement Gratuity: This is payable to the retiring Government servant. A minimum of 5 years of 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 Basic Pay plus Dearness Allowance is drawn on the date of retirement for each completed six monthly periods of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable for a qualifying service of 33 years or more is 16 times the Basic Pay plus DA, subject to a maximum of Rs. 20 lakhs.

Death Gratuity: This is a one-time lump sum benefit payable to the nominee or family member of a Government servant dying in harness. There is no stipulation in regard to any minimum length of service rendered by the deceased employee. Entitlement of death gratuity is regulated as under:

The maximum amount of Death Gratuity admissible is Rs. 20 lakhs w.e.f. 1.1.2016

Service Gratuity: A retiring Government servant will be entitled to receive service gratuity (and not pension) if the total qualifying service is less than 10 years. The admissible amount is half a month’s basic pay last drawn plus DA for each completed 6 monthly periods of qualifying service. This one-time lump sum payment is distinct from retirement gratuity and is paid over and above the retirement gratuity.

Calculation of Gratuity & Leave Encashment

Central Government employees retired during the period from January 2020 to June 2021 – Calculation of Gratuity and Cash payment in lieu of Leave – Finance Ministry OM dated 07.09.2021 PDF Download – Click Here

Latest Updates on Gratuity for CG Employees:

• CG employees retired during the period from Jan 2020 to June 2021: Calculation of Gratuity and Leave Encashment September 9, 2021
• Loss of Gratuity and Leave Salary Due to Freezing of Dearness Allowance October 10, 2020
• Release Gratuity to retired employees of BSNL without any delay July 11, 2020
• Benefit of Gratuity to CG Employees Covered under National Pension System (NPS) February 17, 2020
• Gratuity – Calculation, Ceiling, Qualifying Service and Rates September 17, 2019
• Revision of Gratuity and Severance Amount to GDS July 24, 2019
• 7th Pay Commission Committee recommendations on Gratuity July 23, 2019
• Stoppage of Retirement and Death Gratuity to the NPS Subscribers May 28, 2019
• IT Exemption for Gratuity upto 20 Lakhs – Gazette Notification March 15, 2019
• IT Exemption on Gratuity – 20 lakhs w.e.f. 29.3.2018 March 12, 2019
• Brief on Payment of Gratuity (Amendment) Act, 2018 May 31, 2018
• Gazette Notification on Gratuity: Amount, Effective Date and Maternity Leave March 30, 2018
• Gratuity ceiling raised to 20 Lakhs w.e.f. 29.3.2018 March 30, 2018
• Upper Ceiling on Gratuity 20 Lakhs March 24, 2018
• UFBU writes to Finance Minister regarding Gratuity Ceiling December 11, 2017
• Non-Payment of Gratuity and Pay Revision Arrears by HEC March 15, 2017
• Retirement Gratuity Ceiling hiked to Rs.20 lakh for bank employees and officers March 7, 2017
• Rationalisation of Death Gratuity by 7th Pay Commission December 12, 2015
• 7th CPC increased Gratuity Ceiling limit – 20 lakh from 1.1.2016 December 12, 2015