DCRG for Railway Pensioners – Calculation

DCRG for Railway Pensioners – Death cum Retirement Gratuity Calculation on the basis of Length of Service

1.         What is DCRG?

Death-cum-Retirement Gratuity (DCRG) is a lump sum payment to the employee on his retirement or to his family in the event of his death or superannuation depending on the case.

2.         What is Retirement Gratuity?

(i)         It is a lump sum payment to the employee on his retirement.

(ii)        A Railway Servant who has completed five years qualifying service is granted retirement gratuity equal to 1/4th of his salary for each completed six monthly period of qualifying service subject to a maximum of 16 ½ times the emoluments, provided that the amount of retirement gratuity payable shall, in no case exceed Rupees Ten Lacs .


3.         What is Death Gratuity?

(i)         It is lump sum payment to the family of a Railway Servant in the event of his death while in service.

(ii)        In the event of death of an employee during service, the Death Gratuity shall be admissible at the following rates:

Length of Service

Rate of Gratuity
(a)Less than 1 year : 2 times of salary
(b)One year or more but less than 5 years : 6 times of salary
(c) 5 years or more but less than 20 years : 12 times of salary
(d)20 years or more : Half of salary for every completed six monthly period of qualifying service subject to a maximum of 33 times of salary provided that the amount of death gratuity shall, in no case, exceed Ten Lacs.

Illustation for calculating DCRG

In case of an employee serving in Pay Band-2 ScaleRs.9300-34800 in Grade Pay Rs.4200 who was drawing Last Pay Rs.20000/- retires on superannuation after completing 33 years of qualifying service. 40% commutation of Pension opted.


(Maximum Rs.10,00000/-)

Retirement = LP + DA x No. of SMCS


20000 + 9000 x 66 = Rs.478500/-


Death    = LP + DA x No. of SMCS


20000 + 9000 x 66 = Rs.957000/-



4.         Death Gratuity is payable to whom?

The Railway Servant shall make a nomination conferring on one or more persons the right to receive DCRG provided that if, at the time of making nomination, he has a family, the nomination shall not be in favour of any person other than the family members.

For the purpose of DCRG, the ‘Family’ includes the following relatives of the Railway Servant:

(i) Wife/Husband

(ii) Sons

(iii) Un-married and widowed Daughters

(iv) Father

(v) Mother

(vi) Brothers below the age of 18 years and un-married or widowed sisters

(vii) Children of a pre-deceased son.

In absence of any nomination, the Death Gratuity is paid in order of preference as mentioned above against the term family.

In case, the payment of DCRG is arranged late and the delay is attributed to administrative lapse, interest as per extant rate of interest on PF shall be payable for the period beyond 3 months after it became due. The powers to grant interest rest with General Manager.

5.         What can be deducted from DCRG?

(i)         Any dues, if found outstanding, will be recovered from DCRG of the retired official. If they could not be recovered at the time of retirement then they can be recovered from the Dearness Relief of the retiree’s pension, without the consent of the pensioner. (Rule 16(6) of Railway Services (Pension) Rules 1993).

(ii)        If the Railway Employee is in occupation of Railway Quarter, vacation of the Railway Quarter and proof of handing over to Engineering Department and clearance of recoverable Water charges, Lawn Charges and Electric Charges etc. is necessary before payment of gratuity.

Check links below for more details on each of Retirement Benefit applicable to Railway Employees

Source: Indian Railways