Retirement & Pension

Conditions

• Gratuity is a lump-sum payment made by an employer as a mark of gratitude for the services rendered by his employee.
• It is an important form of social security benefit.
• Gratuity is payable at the end of the employment (by way of retirement, death, termination or resignation). 

Service Gratutiy

• Scheme is for permanent Group C and D Railway Employees declared surplus(medically decategorized or otherwise) and placed in supernumerary post(SNP) and for whome remployment is not feasible.
• Scheme is applicable only for those who have 5 years residual service.
• Employee would be eligible to give notice under this within 3 months after a period of 1 year from the date he/she is declared surplus and placed in SNP.
• Particular Railway/Production Unit would be reckoned as the unit for providing alternate employment.

• Pension on 1.1.2006 will be calculated as

1. Existing Pension/Family Pension.
2. Dearness Pension(Not done in case of post 1.1.2004 pensioners).
3. 24% Dearness Relief will be added.
4. 40% fitment benefit on item (1)

• New pension is the sum of (1) to (4) plus Dearness Relief applicable on this amount.

 Number eligible