Articles you may Like
7th Pay Commission recommends for increasing Retirement Gratuity Ceiling limit from Rs.10 lakhs to Rs.20 lakhs from 1.1.2016
After implementation of 6th Pay commission recommendations, retirement gratuity is calculated @ 1/4th of a months 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. Maximum retirement gratuity payable is 16 times the Basic Pay, subject to a maximum of Rs. 10 lakhs.
The Commission recommends enhancement in the ceiling of Retirement gratuity from the existing 10 lakh to 20 lakh from 01.01.2016.
A number of representations have been received by the Commission stating that there is a need to revise the existing ceiling of ₹10.00 lakh with regard to payment of service gratuity.
Analysis and Recommendations :
Rule 49 and 50 of the CCS (Pension) Rules provides that a government servant is entitled to get retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the last emoluments subject to a maximum of ₹10 lakh.
The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated that the VI CPC has increased the amount of gratuity from 3.5 lakh to 10 lakh w.e.f. 01.01.2006. This amount, in the view of the department, is not commensurate with emoluments that are available to senior officers at the time of retirement. The department has suggested to the Commission that a view could be taken to index gratuity with amount of DA admissible at the time of retirement.
The Commission notes that there is merit in the argument advanced to index the ceiling on gratuity so that the benefits of the enhanced ceiling are available to personnel in a manner which is more even over a time frame.
The Commission recommends enhancement in the ceiling of gratuity from the existing 10 lakh to 20 lakh from 01.01.2016. The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.
Also checkout following for more topic wise details on 7th Pay Commission Report
- 7th Pay Commission Pension for Pre-2016 Pensioners – CPAO instructions
- 7th Pay Commission Pension fixation based on Notional Pay – Procedure envisaged by Finance Ministry
- Revision of 7th Pay Commission Pension on notional pay – Confederation’s Analysis
- 7th Pay Commission Pension Fixation based on notional pay fixed in 7th Pay Commission Pay Matrix – Illustrations
- Revised 7th Pay Commission Pension fixation for Pre-2016 Pensioners and Family Pensioners – Orders issued
- 7th Pay Commission related expenditure may be met by Income Disclosure II
- Payment of arrears on ad-hoc basis of pay to Defence Forces
- Who are entitled to 7th Pay Commission additional Bunching increment ?
- 7th Pay Commission Latest News – Increase in Basic Pay meagre but expected gains out of other compensation, a solace
- 7th Pay Commission – Revision in 7th CPC report expected to be made by Empowered Committee
- 7th Pay Commission News – Who are to be benefited more in terms of higher pay ?
- 7th Pay Commission report on DA, CEA, FPA, NPA, OTA and other Allowances
- 7th Pay Commission Report on Leave Encashment of Earned Leave
- 7th Pay Commission Latest News – Issues to be addressed
- Family Planning Allowance be abolished – 7th Pay Commission
- 7th Pay Commission’s Report on Leave Travel Concession (LTC)
- 7th Pay Commission’s suggestions on NPS
- 7th Pay Commission Report to be processed by Empowered Committee – Finance Ministry Order
- Heads of NDC, NDA and DSSC institutions should be upgraded to Apex Scale – 7th Pay Commission
- JPA, SPA, Off-set Machine Operator, Machine Man and Electrical Supervisor to get higher grade pay – 7th CPC Recommendations
- Store Keeper (Tech) and Asst Store Keeper to get higher grade pay – 7th CPC Recommendations
- Karnataka Pensioners associations views on 7th Pay Commission Report
- Assistant Research Officer and Senior Research Assistant of CWC to get next higher Grade Pay – 7th Pay Commission
- Comparison of Pay between Central Government Civilian and Defence Forces Officers
- Higher Grade Pay for Railway Commercial clerk, Reservation Clerk and ticket checking staff