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 2005

Amendment to OCS Pension Rules 2015

FINANCE DEPTT. O.M. NO. 32618/F DATED 10.10.2018