Central Government Employees GRATUITY
This is payable to the retiring Government servant. A minimum of 5 years’ 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’s Basic Pay plus Dearness Allowance drawn on the date of retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable for qualifying service of 33 years or more is 16 times the Basic Pay plus DA, subject to a maximum of Rs. 20 lakhs.
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:
|Less than one year||2 times of basic pay|
|One year or more but less than 5 years||6 times of basic pay|
|5 years or more but less than 11 years||12 times of basic pay|
|11 years or more but less than 20 years||20 times of basic pay|
|20 years or more||Half of emoluments for every completed 6 monthly period of qualifying service subject to a maximum of 33 times of emoluments.|
Maximum amount of Death Gratuity admissible is Rs. 20 lakhs w.e.f. 1.1.2016
A retiring Government servant will be entitled to receive service gratuity (and not pension) if total qualifying service is less than 10 years. Admissible amount is half month’s basic pay last drawn plus DA for each completed 6 monthly period of qualifying service. This one time lump sum payment is distinct from retirement gratuity and is paid over and above the retirement gratuity.
The withheld amount of gratuity under sub-rule (5) of CCS(Pension) Rules, 1972, the retiring Government employees, shall be paid immediately on production of “No Demand Certificate” from the Directorate of Estates after actual vacation of the Government accommodation.
The Directorate of Estates shall ensure that “No Demand Certificate” shall be given to the Government employee within a period of fourteen days from the actual date of vacation of the Government accommodation and the allottee shall be entitled to payment of interest (at the rate applicable to General Provident Fund deposit determined from time to time by the Government of India) on the excess withheld amount of gratuity which is required to be refunded., after adjusting the arrears of licence fee and damages, if any, payable by the allottee and the interest shall be payable by the Directorate of Estates through the concerned Accounts Officer of the Government employee from the actual date of vacation of the Government accommodation up to the date of refund of excess withheld amount of gratuity.
No. Death gratuity/ retirement gratuity and commuted value of the pension are fully exempted from Income tax.
Yes. Ceiling on all gratuities has been raised to Rs. 20 lakhs w.e.f 01.01.20016 (earlier the limit was Rs.10 lakhs). DA admissible on the date of retirement is also to be added with pay for calculation of gratuity.
No. The amount of retirement/death gratuity as determined by the PAO shall be intimated to the Head of Office who will draw and disburse the amount to the retired Government servant or to the nominee/ family as the case may be.
No. The Administrative Deptt/ Accounts Officer shall not withhold any gratuity unless the Head of Office
a) Enclose instructions received from Directorate of Estate for withholding of 10% gratuity for outstanding license fee.
b) Informs of ongoing disciplinary proceedings.
The Government dues as ascertained and assessed by the Head of Office which remain outstanding on the date of retirement shall be adjusted against the amount of Central Government Employees retirement Gratuity. The term Government dues includes dues pertaining to Government accommodation including arrears of license fee as well as damages for occupation of the Government accommodation beyond the permissible period after the date of retirement, if any. Government dues also includes balance of house building advance, conveyance, or
any other advance, overpayment of pay and allowance or leave salary and arrears of TDS etc.
If death gratuity is granted to a minor member of the family, it shall be payable to the guardian on behalf of the minor. In the case of absence of a natural guardian, the death gratuity to the extent of 20% or Rs.1.50 lakhs shall be paid to the guardian, without production of a guardianship certificate, but subject to production of an indemnity bond with suitable sureties. The balance amount shall be paid to the guardian on production of a guardianship certificate.
The Central Government Employees retirement gratuity can be withheld in the following circumstances.
100% gratuity shall be withheld on retirement if any disciplinary / judicial proceedings are instituted against the Central Government Employees before his retirement. The gratuity in such cases will be withheld till the conclusion of the departmental/judicial proceedings and issue of final orders thereon.
The Administrative Department/ Accounts Officer receives instructions from Directorate of Estates to withhold 10% gratuity for outstanding license fee/ damages in respect of the Government accommodation.
The President reserves to himself the right of withholding a pension or gratuity or both either in full or in part or withdrawing a pension in full or in part, whether permanently or for a specified period and of ordering recovery from a pension or gratuity of the whole or part of any pecuniary loss caused to the Government, if, in any departmental or judicial proceedings, the pensioner is found guilty or grave misconduct or negligence during he period or service, including service rendered upon re-employment after retirement. When the Government servant is exonerated fully after the departmental / judicial proceedings, gratuity shall be paid after issue of the final orders. When the Government servant/ pensioner is found guilty, Government will issue orders for regulation of gratuity.
If payment of gratuity is delayed beyond its permissible period, interest at the rate of interest rate applicable to GPF deposits from time to time is required to be paid along with gratuity. In every case of delayed payment of gratuity shall be considered by the Secretary of the Administrative Ministry /Department and if the delay is due to administrative delay, Secretary of the Administrative Ministry /Department will sanction payment of interest. In all case where interest has been sanctioned by the Secretary of the Administrative Ministry/ Department, such Ministry/ Department shall fix the responsibility and take disciplinary action against the Government servant or servants who are found responsible for the delay in the payment of gratuity.