Gratuity calculation: The Central Government has recently notified the Central Civil Services (Payment of Gratuity under National Payment System) Rules, 2021. This is the law related to your gratuity. This rule of payment of gratuity will be applicable to the employees of the Central Government. This will also include civilian government servants appointed to the posts of the Defense Service and the Civil Service for the Centre. For those who have been appointed on or after the first day of January 2004, this rule will be applicable.
According to the gazette notification, any further claims made for gratuity will be applicable as per the new rule. For this, it will be seen whether a government employee is retiring, or has retired, whether he has been discharged, whether he has been allowed to retire from service or has died. Gratuity will be claimed accordingly, whatever the situation may be with the employee.
The date on which a Government servant retires or is about to retire or is discharged or has been approved to resign, that day will be considered as the last working day of the employee and gratuity will be calculated accordingly. On the day of the death of a government employee, the gratuity will be calculated considering that day as a working day.
Eligibility for Retirement Gratuity
- According to the notification of the Central Government, retirement gratuity will be given to a government employee only when he completes 5 years of his service. Along with this, the conditions mentioned below must be fulfilled.
- The employee should retire at the age of superannuation or invalidation. Or
- The employee has retired or is about to retire before the age of superannuation, or
- be declared surplus in the job in which the employee was employed and in case of surplus employee, he takes special voluntary retirement, or
- If permission has been given to get service or post in any company or corporation of Central Government or State Government, post or service has been received in any institution of Central or State Government, then such government employees are entitled to gratuity.
Payment calculation
In the above mentioned case, the employee will be given the basis of his total remuneration. Gratuity will be one-fourth of the total remuneration for the 6 months completed in the job. This maximum can be up to 161/2 times of the total remuneration. Here the total remuneration means how much basic payment the government employee was getting before retirement or on the day of death. If the employee was posted as a doctor, then non-practicing allowance will also be added to his basic payment.
