Calculation of Gratuity

Calculation of Gratuity

Service Gratutiy

·         When a Railway Employee has rendered service less than 10 years no pension shall be paid.
·         Service Gratutiy will be paid at the rate of one month emoluments for each completed year of   service.
·         No reduction will be made whether the retirement of the Railway Employee is on medical grounds or personal grounds.
·         Emoluments means basic pay(ie, pay in Pay Band plus applicable Grade Pay) plus NPA if any and DA admissible on the date of retirement.

Retirement Gratuity

·         When a Railway Employeehas rendered minimum qualifying service of 5 years Retirement Gratuity is paid at the rate of 1/4th of one month’s pay per each completed half year of service subject to a maximum of 161/2 month’s pay or 10 Lakh rupees whichever is less.

Death Gratuity
Paid in case of death of a Railway Employee while in service at the following rates.

Less than 1 year	2 times emoluments
One year or more but less than 5 years	6 times emoluments
5 years or more but less than 20 years	12 times emoluments
20 years of more	Half of emoluments for every completed 6 monthly period subject to maximum 33 times emoluments subject to maximum limit of Rs. 10 Lakh.

Terminal Gratuity

5 years or more but less than 10 years	Half month pay for each completed year of service
10 years or more but less than 20 years	One month pay for each completed year of service subject to maximum limit of Rs. 150000 or 15 months pay whichever is less.