A gratuity is a lump sum payment made by the government to employees as a token of appreciation for their long and continuous service. For central government employees, gratuity rules are more favorable compared to private sector employees, governed by the Central Civil Services (Pension) Rules.
Main Features of Central Government Gratuity:
Eligibility: Central government employees become eligible for gratuity after completing just 1 year of service (compared to 5 years in the private sector).
Calculation Basis:
- For service between 1 and 5 years: Half a month's salary for each completed 6-month period.
- For 5+ years: One month's salary for each completed year (up to 16.5 months salary).
- For death/disability cases: One month's salary for each 6 months.
- Salary Component: The Calculation is based on the last drawn basic pay plus dearness allowance (DA).
- Tax Benefits: The Entire gratuity amount is tax-free for government employees under Section 10(10) of the Income Tax Act.
Maximum Gratuity Limit
As per the 7th Pay Commission, the maximum gratuity limit for central government employees is ₹20 lakhs. This is significantly higher than the previous limit of ₹10 lakhs.
How to Use This Calculator?
Simply enter your last drawn basic pay plus DA and your total years of service, and select your service type. The calculator will automatically compute your estimated gratuity amount based on the official rules for central government employees.
Important Notes
- The calculator provides estimates based on standard rules.
- For exact calculations, consult your department's accounts office.
- Rules may vary slightly for certain categories of employees.
- Always refer to the latest government notifications for updates.
Central Government Employee Gratuity Calculator
Gratuity is an important retirement benefit for central government employees in India. This calculator helps you estimate your gratuity amount based on your last drawn salary and years of service.
For central government employees, gratuity is calculated differently than private sector employees, with more favorable terms under the Central Civil Services (Pension) Rules.
Calculate Your Gratuity
Your Estimated Gratuity
How Gratuity is Calculated for Central Government Employees
For central government employees, gratuity is calculated as follows:
| Service Duration | Calculation Method | Maximum Limit |
|---|---|---|
| Less than 1 year | No gratuity | - |
| 1 year or more but less than 5 years | Half month's salary for each completed 6-month period | - |
| 5 years or more | One month's salary for each completed year (maximum 16.5 months) | ₹20 lakhs |
| Death or disability in service | One month's salary for each completed 6-month period | ₹20 lakhs |
Important Notes:
- The salary considered is the last drawn basic pay plus dearness allowance (DA).
- For central government employees, the maximum gratuity limit is ₹20 lakhs (as per 7th Pay Commission).
- Service of 6 months or more is counted as a full year for gratuity calculation.
- Gratuity is tax-free under Section 10(10) of the Income Tax Act.
Note: This calculator provides an estimate based on standard rules. For exact calculations, please consult your department's accounts office or refer to the latest government notifications.
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