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HomePersonal FinanceBig Upodate on Gratuity Calculation: Central government employees new retirement benefits notification...

Big Upodate on Gratuity Calculation: Central government employees new retirement benefits notification released

Gratuity calculation: The rules for calculating Gratuity for central employees have changed. Now employees will get gratuity on retirement on new basis. Gratuity will be calculated at the time of retirement on the basis of Central Civil Services Rule 2021. The Central Government has recently notified the Central Civil Services (Payment of Gratuity under National Pension System Rules, 2021) Rules, 2021. This is the law related to your gratuity. This rule of gratuity payment will be applicable to the employees of the Central Government. This will also include civilian government servants appointed on the posts of the Defense Service and the Civil Service for the Centre. These will be those employees, who have been appointed on or after January 1, 2004, for them this rule will be applicable.




The new rules have been placed under the National Pension System. 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 when a government employee is retiring or when he has retired. Has he been discharged, has he been allowed to retire from service or has he died? Whatever the situation with the employee, his last working day will be counted. Gratuity will be claimed accordingly.

Eligibility for Retirement Gratuity

According to the notification, retirement gratuity will be given to a government employee only when he completes 5 years of his service. Also some conditions have to be fulfilled. The employee retires at the age of superannuation or invalidation or the employee has retired or is about to retire before the age of superannuation, or is declared surplus in the job in which the employee was employed and special voluntary in case of surplus employee Have taken Retirement (Special Voluntary Retirement Scheme) or have got permission to get service or post in any company or corporation of Central or State Government. If a post or service has been received in any institution of the Central or State Government, then such government employees are entitled to get gratuity.




Calculation of Gratuity Payment

Gratuity will be one-fourth of the total basic salary for the 6 months completed in the job. This will be made with the completion of service every 6 months. The maximum can be up to 161/2 times the total basic salary. But, the maximum will be 16 and a half times. This basic salary will be counted till the date of retirement or death of the government employee. Non-practicing allowance will also be added to the basic payment in the case of a government doctor.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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