View Full Version : Calculation of Gratuity

18-09-2008, 11:27 AM
Now the pension will paid full on completion of 20 years of service. It means earlier concept of full pension on completion of 33 years in not valid at all and there is no significance attached to 33 years now on wards.

I wanted to know whether concept of calculating full gratuity at 33 years would still exits or it has also been done away. It means govt servants putting more service will get higher gratuity. For example is a person has put in 35 years of service should get gratuity equivalent to 17.5 months instead of 16.5 months as per earlier instructions.

18-09-2008, 05:11 PM
The following relevant paras of O.M. F.No. 38/37/08-P&PW(A) dtd 02-09-2008 0f Dept of Pension & pensioner's Welfare, Min. of PP&G, GOI are reproduced below for information:

para 5.2 - Linkage of full pension with 33 years of qualifying service shall be dispensed with. Once a Govt. Servant has rendered the min. QS of 20 years, pension shall be paid at 50% of the emoluments or average emoluments received during the last 10 months, whichever is more beneficial to him.

para 5.3 - {same position for pensions under Rule 49(2) of CCS(Pension) Rules, 1972.}

para 5.4 - The revised provisions for calculatuion of pension in para 5.2 and para 5.3 above shall come into force w.e.f. the date of issue of this O.M. ----The Govt. Servants who have retired on or after 1.1.2006 but before the date of issue of this O.M. will continue to be governed by the Rules / Orders which were in force immediately before coming into effect of these orders.

para 6.1 - The maximum limit of all kinds of gratuity shall be Rs.10 lakh. Accordingly, first proviso under Rule 50(1)(b) of Pension Rules shall stand modified to the effect that the amount of retirement gratuity or death gratuity payable under this Rule shall in no case exceed Rs.10 lakh.

1. The max. QS 33 years under Rule 50(1)(a) ibid remained same - as nothing said about it in this O.M.
2. Wages of CPSUs' employees are divided by 26 for a day's calculation presumably max. 26 working days in a month.

krk rao

19-09-2008, 11:22 AM
One does not mind if you give anything you wish to a particular category but why should you put another category at LOSS especially when the years of service rendered is much more. IS MINISTRY AUTHORISED TO GO BEYOND THE CABINET DECISION DUELY PUBLISHED IN GAZETTE?? FANTASTIC!! I think they want a good BANGING FROM THE COURT.