Gratuity
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Gratuity is a lump-sum payment made by an employer as a mark of gratitude for the services rendered by his employee.
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It is an important form of social security benefit.
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Gratuity is payable at the end of the employment (by way of retirement, death, termination or resignation).
Service Gratutiy
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When a Railway Employee has rendered service less than 10 years no pension shall be paid.
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Service Gratutiy will be paid at the rate of one month emoluments for each completed year of service.
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No reduction will be made whether the retirement of the Railway Employee is on medical grounds or personal grounds.
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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
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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
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2 times emoluments
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One year or more but less than 5 years
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6 times emoluments
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5 years or more but less than 20 years
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12 times emoluments
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20 years of more
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Half of emoluments for every completed 6 monthly period subject to maximum 33 times emoluments subject to maximum limit of Rs. 10 Lakh.
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Terminal Gratuity
5 years or more but less than 10 years
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Half month pay for each completed year of service
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10 years or more but less than 20 years
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One month pay for each completed year of service subject to maximum limit of Rs. 150000 or 15 months pay whichever is less.
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