7th Central Pay Commission : Gratuity for Defence Personnel

7th CPC : Gratuity for Defence Personnel

Gratuity

Gratuity means a onetime reward given to the employer for the past service rendered. All service which qualifies for pension of an officer shall also qualify for gratuity. The reckonable emoluments for gratuity are same as for pension. However, gratuity will additionally include DA also.

Retirement Gratuity.

Officers and JCOs/OR who have put in qualifying service and are eligible for service pension/invalid gratuity or pension of any type are entitled for Retirement Gratuity. It is paid at the rate of one fourth of the emoluments last drawn for very six months of completed service, subject to a maximum of sixteen and half months pay, or Rs 20 lakhs whichever is less.

Retiring / Service Gratuity.

Where service rendered is less than the minimum qualifying service to earn a pension, but is 5 years or more in case of JCOs/OR and 10 years or more in case of officers, Service/Retiring Gratuity is admissible at the rate of half a month’s reckonable emoluments for each completed six monthly period of qualifying service. No weightage in qualifying service is admissible for calculating Retiring Gratuity.

Invalid Gratuity.

An individual invalidated out of service for causes which are neither attributable to nor aggravated (NANA) by service, is granted invalid pension, if he has rendered more than 10 years’ service. If the service rendered is less than 10 years at the time of invalidment, only invalid gratuity is paid. The amount of Invalid
Gratuity shall be calculated at half a month’s Reckonable Emoluments, for each completed six monthly period of qualifying service. The maximum limit of Invalid Gratuity is Rs 20 lakh.

Death Gratuity.

Terminal Gratuity.

Terminal gratuity is paid to Short Service Commissioned Officers who are not entitled for any type of pension. The terminal gratuity is calculated at the rate of half-a-month’s reckonable emoluments for each completed six-monthly period of service. Terminal Gratuity has been granted uniform 10.5 months of reckonable emoluments, for exit any time between seven years and ten years.

The Max limit of all kinds of Gratuity i.e Retiring/ Retirement/ Service/ Invalid/ Special/Terminal/Death Gratuity shall be Rs 20 Lakhs.

This ceiling on gratuity shall be increased by 25% whenever the Dearness Allces rises by 50% of the Basic Pay.

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