Government employees follow the CCS (Pension) Rules 1972 / 2021 - different from the Payment of Gratuity Act used by private sector. Retirement gratuity = (1/4 of last basic + DA) x service years up to a max of 16.5 times monthly emoluments, capped at ₹25 lakh (post-7th Pay Commission). The calculator handles retirement, voluntary retirement, and death-in-service cases.
When to use this
Use for: central government employees (CCS, Defence, Railways) retiring or seeking VRS, state government employees with their own pension rules, PSU staff under their own gratuity schemes, university teachers / KVS / NVS / NCERT staff.
Frequently Asked Questions
What's the cap for govt vs private gratuity?
Government: ₹25 lakh (post-7th Pay Commission, revised in 2024). Private (covered under PG Act): ₹20 lakh. Both caps are tax-free. The actual gratuity computation formula is also different - govt uses 1/4 of monthly emoluments per year of service (with overall 16.5-month cap).
Is gratuity calculated differently for VRS vs normal retirement?
Yes - for VRS, you may qualify for additional service years (notional service up to 5 years can be added). The calculator includes a VRS toggle that adds the notional period to your actual service when computing gratuity.
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