Counting of Past Service
Counting of past service helps in getting benefits in terms of retirement gratuity and death gratuity. Let’s see what exactly the prevailing rules for gratuity are.
Gratuity
Gratuity is payable to the retiring Government servant. A minimum of 5 years qualifying service and eligibility to receive service gratuity/pension is essential to get this one-time lump sum benefit. Retirement gratuity is calculated at 1/4th of a month’s Basic Pay plus Dearness Allowance drawn before retirement for each completed six-monthly period of qualifying service. There is no minimum limit for the amount of gratuity.
Death Gratuity
This is a one-time lump sum benefit payable to the widow/widower or the nominee of a permanent or a quasi-permanent or a temporary Government servant, including CPF beneficiaries, dying in harness.
Gratuity / Death Gratuity Emoluments
Less than one year: 2 times of monthly emoluments
One year or more but less than 5 years: 6 times of monthly emoluments
5 years or more but less than 11 years: 12 times of monthly emoluments
11 years or more but less than 20 years: 20 times of monthly emoluments
More than 20 years: Half month's emoluments for every completed six-monthly period of qualifying service subject to a maximum of 33 times of emoluments
How Counting Past Services Gives Benefit to Employee
If you joined in a different cadre under the Government after rendering a service of 5 years in the previous cadre, the total serviceable period including services of both the cadres will be considered for your gratuity calculation.
Case-I
If your 5 years of services in the initial cadre are forfeited, the gratuity calculation will be as follows:
Year of qualifying service: 25 years
Gratuity: 50 X 25,000 = Rs 12,50,000/-
Case-II
If the 5 years of service in the initial cadre are not forfeited, the gratuity calculation will be different.
Year of qualifying service=30
Gratuity= 60 X 25000 = Rs 1500000/-
You can see the difference in the gratuity payable considering both the cases.
Now, you can go through the following rules / clarification to have a clear picture relating to counting of past services.
RELATED CIRCULARS
Refer Rule 34 of OCS (Pension) Rules 1992
This document refers to the provisions outlined in Rule 34 regarding pension benefits and their application. Please review the detailed embedded document below:
Download PDFAmendment to OCS Pension Rules 2005
The 2005 amendment to the OCS pension rules introduces changes in the calculation and eligibility criteria for pension benefits. Below is the embedded document:
Download PDFAmendment to OCS Pension Rules 2015
Learn about the significant changes introduced in 2015 to the OCS Pension rules, affecting service computation and retirement benefits:
Download PDFFinance Dept. O.M. No. 32618/F Dated 10.10.2018
This official memorandum outlines updates related to the OCS pension rules and amendments for that period:
Download PDFFinance Department O.M. 40530/F Dated 03.12.2019
This memorandum introduces crucial revisions to the pension rules, providing clarification on the implementation of benefits:
Download PDFFinance Department O.M. No. 36226/F Dated 30.12.2024
This document provides the most recent updates to the OCS pension rules, detailing any recent amendments as of December 2024:
Download PDF