Type of Gratuity and amount….(read more)

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The government of India has put in place various rules, regulations, and benefiting schemes for employees to help them lead a comfortable life after retirement. One such benefit scheme is the CCS (Pension) Rules, 1972. These rules apply to employees of Central Government services, excluding those in the military, paramilitary forces, and railways.

The CCS (Pension) Rules, 1972, aims to provide financial security to an employee upon his/her retirement. According to these rules, an employee who has completed a minimum of 10 years of service is eligible for a pension, which is a fixed amount of money paid out to the retiree for the rest of his/her life. The calculation of pension is based on the average of the last ten months of the employee’s basic pay before retirement.

In addition to pension benefits, employees are also entitled to gratuity under the Act, which is a lump sum amount paid to the employee at the time of retirement or resignation. The amount of gratuity is dependent on the employee’s years of service, and the different rules applicable to different sectors. Gratuity, also known as terminal benefit, is paid to the employee as a way of thanking them for their service and contribution to the organisation.

Furthermore, employees retiring on attaining the age of 60 years or on completion of 33 years of qualifying service are entitled to a retirement benefit. The retirement benefit is calculated at the rate of ½ of the average emoluments for the last 10 months payable for every completed year of qualifying service.

Moreover, in case of the untimely death of an employee during service, the spouse or dependent family members (children below 25 years of age) are entitled to a family pension at a reduced rate of the pension. This benefit ensures that the family of the deceased employee continues to receive financial support after their demise.

In conclusion, the government of India has made provisions for the financial security of employees who have dedicated their lives to serving the nation. The CCS (Pension) Rules, 1972, gratuity, and other retirement benefits are a sure way of providing financial security for the employees and their families after retirement. Understanding pension rules is an essential part of any employees working life, as it can significantly impact their financial security in the future.