Central Government Gratuity Calculator

Calculate the retirement gratuity for a central government employee under the CCS (Pension) Rules, based on last drawn basic+DA and years of qualifying service.

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Government retirement gratuity = 1/4 × (Basic+DA) × completed six-monthly periods of service, capped at 16.5× (Basic+DA) or ₹20,00,000.
₹

Your result

₹12,50,000

Retirement gratuity

Completed six-monthly periods used50
Capped at statutory limit?false

AI explanation

Formula

Gratuity = 1/4 × (Basic+DA) × completed six-monthly periods of qualifying service, capped at 16.5× (Basic+DA) and an overall ceiling of ₹20,00,000

Worked example

₹1,00,000 last drawn, 25 years of service

Worked example: ₹1,00,000 last drawn, 25 years of service
FieldValue
Last drawn basic pay + DA100000
Qualifying service (years)25
Retirement gratuity1250000
Completed six-monthly periods used50
Capped at statutory limit?false

Assumptions

  • This is the CCS (Pension) Rules formula for central government employees — it differs from the Payment of Gratuity Act formula used for private-sector employees.
  • Qualifying service is capped at 33 years (66 six-monthly periods) for gratuity purposes, matching the pension rules' full-service cap.
  • Statutory ceiling of ₹20,00,000, as last revised.

Frequently asked questions

How does the government gratuity formula differ from the private-sector formula?

Government employees under CCS (Pension) Rules get 1/4 × (Basic+DA) per completed six-monthly period, capped at 16.5× (Basic+DA). Private-sector employees under the Payment of Gratuity Act get 15/26 × last drawn salary × years of service — a different formula and rate.

What is the maximum gratuity a government employee can receive?

16.5 times the last drawn basic+DA, subject to an overall statutory ceiling (currently ₹20,00,000), whichever is lower.

Is retirement gratuity taxable?

Retirement gratuity received by government employees is fully exempt from income tax under Section 10(10)(i) of the Income Tax Act, with no upper limit.

Related calculators

Government Pension CalculatorGratuity Calculator

Related articles

Government Schemes1 min read

How a Central Government Employee's Retirement Gratuity Is Calculated

Retirement gratuity is a quarter of last-drawn basic pay plus DA for each completed six-month block of service, capped at 16.5 times that figure or a statutory ceiling — whichever comes first.

Read guide
Government Schemes1 min read

How the Same Retirement Salary Produces a Lump Sum and a Lifetime Pension

Feeding an identical ₹1,00,000 last-drawn salary and 33 years of service into both the gratuity and pension calculators produces a real ₹16,50,000 one-time payment alongside a real ₹50,000-a-month pension for life — two structurally different benefits from one retirement.

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Sources

This calculator provides an estimate only, based on the standard CCS (Pension) Rules formula. Actual gratuity depends on service-record verification — confirm with your pension sanctioning authority.

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