233 - How to calculate retirement gratuity

Retirement gratuity is an important benefit for government employees, calculated as per Central Civil Services (Pension) Rules, 2021 or relevant state/organization rules. It is based on the last drawn basic pay, including Dearness Allowance (DA), and the years of service completed. The formula to calculate gratuity is:

Retirement Gratuity = (Basic Pay + DA) × 1/4 × Completed Years of Service × 16

The maximum gratuity amount is capped at ₹20,00,000 for central government employees. Learn the step-by-step process and understand the eligibility criteria to calculate your retirement gratuity effectively.

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