Gratuity

 

 Retirement Gratuity

• In addition to the monthly pension, Retirement   Gratuity is also paid to the employee on retirement. 

• This is a one time payment of a lump-sum amount.

• For retirement Gratuity employees should have rendered more than 5 years qualifying service. 

• Retirement Gratuity is equal to:- 

• “¼ th of emoluments for each completed six monthly period of service (or) 16 ½ times of emoluments (or) 20 Lakh rupees, Whichever is less.”    

• Emoluments means Basic Pay + DA .

• For Running staff  55% and for Railway Doctors 20% of pay is added to the Basic pay.

                                                        

Key points for MCQ on Retirement Gratuity 

1. Minimum qualifying Service  - 5 years

2. Equal to 1/4th emoluments for each completed six months qualifying service or 16 ½ times of emoluments or Rs. 20 Lakhs whichever is less

3. Emoluments = Basic Pay + DA

4. Running Staff - 55% of Basic Pay is added to the Basic Pay. 

5. Doctors  - 20% of Basic Pay is added to the Basic Pay. 

Death Gratuity 

• If the employee dies while in service, his spouse is paid Death Gratuity as under:

 

• If the employee dies with service of :

Service	Amount of  Death Gratuity (Rs) _____ of emoluments
Less than 1 year	2 times
1 year to less than 5 years	6 times
6 years to less than 11 years	12 times
11 years to less than 20 years	20 times
20 years and more	Half of emoluments for every completed 6 months service or 33 times or Rs.20 Lakhs whichever is less

• Emoluments = Basic Pay + DA

 

• For Running staff  55% and for Railway Doctors 20% of pay is added to the Basic pay.

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