Gratuity Calculations: What will be gratuity for employee with Rs 60,000, Rs 80,000, and Rs 1,00,000 as last-drawn basic pay and 28 years of service?

Gratuity Calculations: Gratuity is a one-time lump sum benefit government employees are eligible to get after at least 5 years of uninterrupted service. Basic pay and dearness allowance (DA) drawn on the retirement day are taken into account for gratuity calculation. Know the gratuity amount for government employees with Rs 60,000, Rs 80,000, and Rs 1,00,000 as the last-drawn basic salary and 28 years of service.

ZeeBiz WebTeam | Mar 25, 2025, 01:25 PM IST

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Gratuity Calculations: The government provides gratuity to its employees as a reward for their long-term service to the department. The employees become eligible to get gratuity if they have completed at least 5 years of uninterrupted service. For a retiree, the amount is a great relief since it may help them achieve some of their financial goals. But how is gratuity calculated for a government employee? What is the maximum gratuity they may receive on the completion of service? What are the different types of gratuities? And what will be the estimated gratuity amounts for employees with last-drawn basic pays of Rs 60,000, Rs 80,000, and Rs 1,00,000 and a pensionable service of 28 years?
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(Disclaimer: These calculations are projections. Actual calculations may change slightly.

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Why do government employees get gratuity?

The government rewards its employee for their long-term service in the form of gratuity. However, in order to get gratuity, they must have completed interrupted service of 5 years.

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What is maximum gratuity government employees can get?

Earlier, the maximum gratuity limit was Rs 20 lakh, but the central government increased it to Rs 25 lakh with effect from January 1, 2024. There is no minimum limit for gratuity.

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How is gratuity calculated?

For a retiree, gratuity is calculated on the basis of one-fourth of a month’s basic pay and dearness allowance (DA) drawn on the date of retirement for each completed six-month period of qualifying service.

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How is gratuity calculated?

Gratuity= (BP+DA)XService half yearsX1/4, where BP is last-drawn basic pay and DA is dearness allowance

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What is death gratuity for government employees?

There is no minimum service duration condition for death gratuity. A deceased's heir or family members are eligible to get the death gratuity. The amount depends on the years of the deceased employee's service.
For less than 2 years of qualifying service, it will be 2 times of the basic pay.

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What is death gratuity for government employees?

For 1 year or more but less than 5 years of qualifying service, it will be 6 times of the basic pay.
For 5 years or more but less than 11 years of qualifying service, it will be 12 times of the basic pay.
For 11 years or more but less than 20 years of qualifying service, it will be 20 times of the basic pay.

For 20 years or more of qualifying service, it will be half of emoluments for every completed 6 monthly period of qualifying service subject to a maximum of 33 times of emoluments.

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Service gratuity

If the government employee's service is less than 10 years, they are not eligible to get a pension under Old Pension Scheme (OPS), but in that condition, they are entitled to get service gratuity.

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Service gratuity

The amount will be the last-drawn half month’s basic pay plus DA for each completed 6 monthly period of qualifying service. This gratuity amount is distinct from retirement gratuity and is paid over and above retirement gratuity.

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Is gratuity different for different pension schemes?

The gratuity amount doesn't depend on the pension system you choose. The gratuity amount calculation will be the same for employees following Old Pension Scheme (OPS), National Pension System (NPS), and Unified Pension Scheme (UPS).

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