COUNTING OF PAST SERVICE
COUNTING OF PAST SERVICE
Counting of past service helps
in getting benefits in terms of retirement gratuity and death gratuity. Let’s
see what exactly the prevailing rules for gratuity.
Gratuity
Gratuity is
payable to the retiring Government servant. A minimum of 5 years qualifying
service and eligibility to receive service gratuity/pension is essential to get
this one-time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a
month’s Basic Pay plus Dearness Allowance drawn before retirement for each completed
six monthly period of qualifying service. There is no minimum limit for the
amount of gratuity.
Death Gratuity
This is a
one-time lump sum benefit payable to the widow/widower or the nominee of a
permanent or a quasi-permanent or a temporary Government servant, including CPF
beneficiaries, dying in harness.
Gratuity /
Death gratuity emoluments
Qualifying
Service
Rate
Less than
one year 2
times of monthly emoluments
One year or
more but less than 5 years 6 times of monthly emoluments
5 years or
more but less than 11 years 12 times of monthly emoluments
11 years or
more but less than 20 years 20 times of monthly emoluments
More than 20 years Half months emoluments for every
completed six monthly period of qualifying
service subject to a maximum
of 33 times of emoluments
Maximum
amount of retirement gratuity / death gratuity admissible is Rs. 15 lakhs
w.e.f. 1.1.2016.
How
counting past services gives benefit to employee
Suppose you
joined in a different cadre under the Government after rendering a service of 5
years in the previous cadre. Let your total serviceable period including
services of both the cadres be 30 years. The last emolument (Basic + DA) prior
to retirement be Rs 50,000/-.
Case-I
If your 5
years of services in the initial cadre in past is forfeited, then at the time
of retirement your gratuity will be as
follows
Year of qualifying service=25
Gratuity= 50 X 25000 = Rs 12,50000/-
Case-II
If your
past period is counted for pensionary benefits
Year of qualifying
service=30
Gratuity= 60 X 25000 = Rs
1500000/-
You can see the difference in the gratuity payable
considering both the cases.
Now, you can go through the following rules / clarification to have a clear picture relating to counting of past services.
Refer Rule 34 of OCS(pension) Rules 1992
Amendment to OCS Pension Rules 2015
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