Retirement gratuity payment as per 7


I retired on 30/06/2016 and as per old rule I have been paid Rs. 10,00,000 (Ten lax)max Amount as per my old pay scale of 9300-34800(PB-II) 5400 GP last pay drawn Rs.32790/-(27390/-5400/-GP) EMOLUMENTS RECKONING FOR GRATUITY PAY RS. 32790+DA(125%) 40988= TOTAL RS. 73778 /- GRATUITY PAYABLE = 1/4 OF THE EMOLUMENTS FOR SIX MONTHLY PERIODS OF TOTAL QUALIFYING SERVICE OF 32 YEARS 3 MONTHS 24 DAYS I.e. 65 HALF YEARLY PERIOD OF SERVICE. TOTAL GRATUITY RS. 73778×65÷4=11,98,893 balance is not yet received as the slap is increased up to 20,00,000/- now please answer me that as what is my new pay scale as per 7th cpcs and what is Gratuity Amount please inform as as earliest.
Thanks and good day.

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D S Kad 2 years 2020-05-01T17:17:47+05:30 2 Answers 434 views 0

Answers ( 2 )


    Press Information Bureau
    Government of India
    Ministry of Labour & Employment
    30-March-2018 11:31 IST
    Payment of Gratuity (Amendment) Act, 2018 brought in force on 29th March, 2018

    Decision:The Payment of Gratuity (Amendment) Bill, 2018 has been passed by Lok Sabha on 15th March, 2018 and by the Rajya Sabha on 22nd March, 2018, has been brought in force on 29th March, 2018.

    Background: The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main purpose for enacting this Act is to provide social security to workman after retirement, whether retirement is a result of superannuation, or physical disablement or impairment of vital part of the body. Therefore, the Payment of Gratuity Act, 1972 is an important social security legislation to wage earning population in industries, factories and establishments.

    2. The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar. Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling has been raised toRs. 20 Lakhs.

    3. Therefore, considering the inflation and wage increase even in case of employees engaged in private sector, this Government decided that the entitlement of gratuity should also be revised in respect of employees who are covered under the Payment of Gratuity Act, 1972. Accordingly, the Government initiated the process for amendment to Payment of Gratuity Act, 1972 to increase the maximum limit of gratuity to such amount as may be notified by the Central Government from time to time. Now, the Government has issued the notification specifying the maximum limit to Rs. 20 Lakh.

    4. In addition, the Bill also envisages to amend the provisions relating to calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave from ‘twelve weeks’ to ‘such period as may be notified by the Central Government from time to time’. This period has also been notified as twenty six weeks.

    Major Impact: The Bill as passed by both the Houses of Parliament, and assented to by the Hon’ble President and notified by the Government. This will ensure harmony amongst employees in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. These employees will be entitled to receive higher amount of gratuity at par with their counterparts in Government sector.

    As per the above Gratuity is eligibility from the F.Y. 2018-19 i.e. from 1-4-2019 : You retired on 30-6-2016 you are not eligible.

    Further to inform you that from 1-1-2016 to 30-06-2016 : D.A. Nil. 7th CPC D.A. rules D.A. starts from 1-7-2917 as 1%. .( As on 31-12-2015 : D.A.119% add 6% of total 125% merged ) = 1-1-2016 as 7th CPC BASIC pay.

    As per 7th CPC of you basic pay 32790 x 2.57 (125%) 84.270/- is fixed in Matrix Level 9 as Rs.85,100,

    Since you any how the gratuity amount was limited to Rs.10, 00,000/- (MAXIMUM) as on 30-6-2016 as per the Press Note in first para.


    Reply for D.S KAD

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