7th CPC Retirement Gratuity Calculator for Central Government Employees

7th CPC Retirement Death Gratuity and Service Gratuity for Central Government Employees

The Indian Central Government has outlined a set of regulations that pertain to the payment of gratuity to its employees in cases of retirement, death, or fulfillment of a certain period of service. There exist three categories of gratuities that are accessible to government employees, namely Retirement Gratuity, Death Gratuity, and Service Gratuity.

How to Check Gratuity Calculator

To utilize the Gratuity Calculator, it is necessary to enter your Basic Salary along with your Pay Matrix Level and Qualifying Service. Please bear in mind that the maximum qualifying service that can be considered is 33 years. Please note that the presented calculation results may only be an approximation. It should also be noted that the calculation results are approximate only.

Retirement Gratuity for Central Govt Employees

The Retirement Gratuity scheme for Central Government employees offers a one-time lump sum payment to those who have completed a minimum of five years of qualifying service and are eligible to receive service gratuity/pension. The amount is calculated by multiplying 1/4th of a month’s basic pay plus dearness allowance on the date of retirement for each completed six monthly periods of qualifying service. There is no minimum amount, and the maximum amount payable is Rs. 20 lakhs. In the case of qualifying service of 33 years or more, the retirement gratuity is 16 times the basic pay plus DA, subject to a maximum of Rs. 20 lakhs.

Death Gratuity for Central Govt Employees

The Death Gratuity is a lump sum payment given to the nominee or family member of a government employee who passes away during their service. The amount is not dependent on the length of service provided by the deceased employee. The guidelines for the entitlement of death gratuity is set by the government, and the maximum amount admissible as of January 1, 2016, is Rs. 20 lakhs. The rate of qualifying service is determined as follows: 2 times the basic pay for less than one year; 6 times the basic pay for one year or more but less than five years; 12 times the basic pay for five years or more but less than eleven years; 20 times the basic pay for eleven years or more but less than twenty years; and half of the emoluments for every completed six-month period of qualifying service for twenty years or more, subject to a maximum of thirty-three times of emoluments.

What is Gratuity in Govt Service in India?

Gratuity in Indian Government service is a significant financial advantage granted to employees by the Government upon their retirement. This benefit is only available to individuals who have served for a minimum of five years. The gratuity amount that an employee can receive upon retirement has a maximum limit of 20 lakhs, which stands as a remarkable monetary recognition for their loyal and dedicated service to the Government.

Retirement Gratuity Calculator 2023

Introducing the Retirement Gratuity Calculator 2023 – an exceptional and user-friendly online tool that is available at absolutely no cost. This calculator is designed to assist you in determining the total amount of your Retirement Gratuity (also referred to as Superannuation) with ease. By simply entering your relevant details, you can receive an approximate calculation of your Retirement Gratuity. We value your feedback and look forward to hearing your thoughts and opinions in the comments section below. Additionally, we offer a Retirement Date Calculator that caters specifically to Central Government Employees in accordance with the 7th Pay Commission.

Gratuity Calculator 2023 India

Service Gratuity for Central Govt Employees

Central government employees who have completed less than ten years of qualifying service may receive a service gratuity instead of a pension. This gratuity, which is separate from retirement gratuity, is a lump sum payment given to retiring employees. To calculate the amount of service gratuity, half a month’s basic pay drawn during the last pay period with DA is added for each completed 6-monthly period of qualifying service. Retirement gratuity is applicable to government employees who have completed five years of qualifying service and become eligible for service gratuity or pension under Rule 44, as per sub-rule (1)(a) of Rule 45 of the Central Civil Service (Pension) Rules, 2021.

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:

• Benefit of Gratuity to CG Employees Covered under National Pension System (NPS) June 15, 2023
• Gazette Notification on Gratuity: Amount, Effective Date and Maternity Leave June 7, 2023
• Amount of Pension which was originally commuted shall only be deducted from the Revised Pension – DoPPW October 31, 2022
• Commuted Amount of Pension is Not Required to be Deducted from Family Pension – DoPPW October 31, 2022
• 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
• 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
• 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

Gratuity Calculator Formula 2023

The formula to calculate retirement gratuity for Central Government employees in 2023 is determined by multiplying 25 percent of a month’s Basic Pay and Dearness Allowance on the date of retirement for each completed six-month period of qualifying service. It is important to note that there is no minimum limit for the amount of gratuity that can be received. Additionally, the payment of gratuity in the unfortunate event of a government servant’s passing is outlined in the Central Civil Services (Pension) Rules of 2021, as specified in the DoP&PW OM dated 11.10.2022.

No. 28/91/2022 -P&PW(B)/8331
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare

3rd Floor. Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 11th October 2022

OFFICE MEMORANDUM

Subject: Payment of Gratuity on death of a Government servant under Central Civil Services (Pension) Rules, 2021 – reg.

The undersigned is directed to say that Department of Pension and Pensioners Welfare has notified the Central Civil Services (Pension) Rules, 2021 in supersession of the Central Civil Service (Pension) Rules, 1972. Rule 47 of the Central Civil Services (Pension) Rules, 2021 deals with payment of gratuity in the event of death of a Government servant.

2. In accordance with Rule 47(1)(5) read with the Explanation below Rule 45 on death of a Government servant, the gratuity shall be paid to the person or persons on whom the right to receive the gratuity is conferred by means of a nomination. In case there is no such nomination or if the nomination made does not subsist, the gratuity shall be paid to all surviving members of the family falling in the following categories, in equal shares:

(i) wife or wives including judicially separated wife or wives in the case of a male Government servant:

(ii) husband, including judicially separated husband in the ease of a female Government servant

(iii) sons including stepsons and adapted sons;

(iv) unmarried daughters including stepdaughters and adopted daughters;

(v) widowed or divorced daughters including stepdaughters and adopted daughters;

If there are no such surviving members of the family as mentioned above, the gratuity shall bc paid to all surviving members of the family falling in the following categories, in equal shares :

(vi) Father including adoptive parents in the ease of individuals whose personal law permits adoption;

(vii) mother including adoptive parents in the ease of individuals whose personal law permits adoption;

(viii) brothers including stepbrothers who are suffering from any disorder or disability of mind including the mentally retarded or physically crippled or disabled without any limit of age and brothers, including stepbrothers, below the age of eighteen years, in other cases.

(ix) unmarried sisters, widowed sisters and divorced sisters including stepsisters;

(x) married daughters;

(xi) children of a pre-deceased son.

3. The above provisions also apply in cases where a Government servant dies after retirement without receiving the retirement gratuity.

4, If a Government servant dies while in service or after retirement without receiving the amount of gratuity and leaves behind no family and (a) has made no nomination, or (b) the nomination made by him does not subsist, the amount of retirement gratuity or death gratuity shall lapse to the Government. However, the amount of death gratuity or retirement gratuity may be paid to the person in whose favour a Succession Certificate in respect of the gratuity in question has been granted by a Court of Law.

5. All Ministries/Departments are requested that the above provisions regarding payment of Gratuity on death of a Government servant under Central Civil Services (Pension) Rules. 2021 may be brought to the notice of the personnel dealing with the pensionary benefits in the Ministry/Department and attached/subordinate offices thereunder, for strict implementation.

Grant of Retirement Gratuity and Death Gratuity under Central Civil Services (Pension) Rules, 2021: DoP&PW OM dated 11.10.2022

No. 28/91/2022 -P&PW(B)/8331
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare

3rd Floor. Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 11th October, 2022

OFFICE MEMORANDUM

Subject: Grant of Retirement Gratuity and Death Gratuity under Central Civil Services (Pension) Rules, 2021-reg.

The undersigned is directed to say that Department of Pension and Pensioners’ Welfare has notified the Central Civil Services (Pension) Rules, 2021 in supersession of the Central Civil Service (Pension) Rules, 1972. In accordance with sub-rule (1)(a) of Rule 45 of the Central Civil Service (Pension) Rules, 2021, retirement gratuity is admissible on retirement of a Government servant, who has completed five years’ qualifying service and has become eligible for service gratuity or pension under Rule 44. The amount of retirement gratuity is equal to one-fourth of the emoluments for each completed six monthly period of qualifying service, subject to a maximum of 16½ times the emoluments.

2. On death of a Government servant while in service, the death gratuity is payable to his family at the rates given in the Table in Rule 45 (1) (b).

3. The emoluments for the purpose of retirement/ death gratuity are reckoned in accordance with rule 31. If the emoluments of a Government servant have been reduced during the last ten months of his service, average emoluments as referred to in Rule 32 are treated as emoluments. Dearness allowance admissible on the date of retirement or death is also treated as emolument for calculating the amount of Retirement/death gratuity. The maximum amount of retirement gratuity or death gratuity admissible under Rule 45 is twenty lakh rupees.

4. In calculating the length of qualifying service under Rule 45, fraction of a year equal to three in months and above is treated as a completed six monthly period and reckoned as qualifying service. In the case of a Government servant who has rendered a qualifying service of four years and nine months or more but less than five years, his qualifying service for the purpose of this rule shall be five years and he shall be eligible for retirement gratuity.

5. All Ministries/Departments are requested that the above provisions regarding grant of Retirement Gratuity and Death Gratuity under Central Civil Services (Pension) Rules, 2021 may be brought to the notice of the personnel dealing with the pensionary benefits in the Ministry/Department and attached/subordinate offices thereunder, for strict implementation.

What is the ceiling of Gratuity?

According to the recommendations of the 7th pay commission, the Gratuity ceiling is proposed to be increased from Rs. 10 lakh to Rs. 20 lakh.

Why calculating taken 26 Days instead of 31?

According to Indian Labor Law, the maximum number of working days in a month is 26, as employees are entitled to a weekly day of rest. This is why the calculation is based on 26 days instead of 31.

Is Gratuity Taxable for CG Employees?

As per the current regulations and legislation governing gratuity, Civil Government (CG) employees need not pay any income tax on the gratuity amount received. It is important to note that the maximum limit for gratuity has been revised to Rs. 20 lakhs post the implementation of the 7th pay commission.

How to calculate Gratuity?

To determine Gratuity entitlements for Central Government Employees, a specific formula is used. This formula involves calculating one-fourth of the emoluments, which encompasses both the Basic Salary and Dearness Allowance, for every six-month period of qualifying service. It is important to note that this calculation cannot exceed 16 ½ times the emoluments. By following this formula, one can accurately determine the appropriate Gratuity amount for Central Government Employees.

What is Gratuity in Central Government Services?

Gratuity is a form of savings that is available to employees in the Central Government Services. The calculation of gratuity is based on the duration of an employee’s service, and the payment of gratuity is typically made upon the employee’s retirement. However, in certain cases, gratuity may be paid out before retirement in accordance with applicable regulations. Overall, gratuity serves as a valuable benefit for employees in the Central Government Services.

How many types of Gratuity in Govt Services?

There are three distinct types of Gratuity available within the Central Government Services. These include the Retirement Gratuity, the Service Gratuity, and the Death Gratuity.