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Gratuity under the 10th BP Settlement signed
Date 07/07/2015 10:20  Author admin  Hits 4393  Language Global
References are being made to us regarding Gratuity under the 10th BP Settlement signed recently on 25-5-2015. Gratuity in the Banks is payable to employees and officers both under the Gratuity Act, 1972 as well as under the provisions of our Bipartite Settlement for employees and as per OSR for officers whichever is higher. (other than in SBI where Gratuity is paid only under the Act with a ceiling of Rs. 10 lacs).

  Eligibility :

As per Bipartite Settlement

As per Gratuity Act

On retirement on superannuation

On retirement on superannuation

On resignation after 10 years’ service

On resignation after 5 years’ service

On termination of service

On disablement

On becoming incapacitated

On death of an employee

On the death of an employee

 

 

Eligible Amount:

As per Bipartite Settlement

As per Gratuity Act

One month Pay for each completed year of service (Max. 15 months) plus half month Pay for each year beyond 30 years’ service ( No maximum)

Pay means Basic pay, Spl. Pay, Offg. Pay, PQP, increment portion of FPP.

15 Days wage x No. of years of service ( Max. Rs. 10 lacs)

Wage means Basic Pay, Spl. Pay, Spl. Allowance, PQP, Offg. Pay, DA, Increment portion of FPP.

1 day = monthly wage/26 days

 PAYMENT OF GRATUITY FROM 1.11.2012

1.      In terms of Section 4 (5) of the Payment of Gratuity Act, 1972, Gratuity under Gratuity Act or BPS provisions whichever is higher is payable.

 

2.      Hence for every retiring employee, Gratuity has to be calculated both under the Act and under BPS and higher of the two will be paid.

 

 

3.      For those employees who have retired from November, 2012, Gratuity will be re-calculated both under the Act and as per 10th BPS and arrears/difference if any will be paid to them.

 

Example:

a)      A Special Assistant (Graduate and CAIIB) with 8 Stagnation Increments and retiring in July, 2015 after 40 years’ service

 

 

Eligibility as per the Act 

Eligibility as per  BPS

Paid/

Payable

 

Under 9th BPS

 

58,342/ 26 x 15 x 40

= 13,46,353

Max. Rs. 10 lacs

28110 x 20 =

Rs. 5,62,000

 

 

 10 lacs

 

 

Under 10th BPS

 

62,758 / 26 x 15 x 40

= 14,48,260

Max Rs. 10 lacs

47270 x 20 =

Rs. 9,45,400

 

10 lacs

 

b)         A Daftary with 8 Stagnation Increments and retiring in July, 2015 after 40 years’ service

 

 

Eligibility as per the Act

Eligibility as per the BPS

Payable

Under 9th BPS

30,930/ 26 x 15 x 40

= 713,770

14890 x 20

= 2,97,800

713,770

 

Under 10th BPS

33,204 /26 x 15 x 40

= 766,250

25000 x 20

= 5,00,000

766,250

Difference of Rs. 52,480 will be paid

 

c)         An Officer retiring in July, 2015 after 40 years’ service

 

       ( with Old Basic pay Rs. 25,700 and revised Basic pay Rs. 42,020)

 

Eligibility as per the Act 

Eligibility as per  BPS

Paid/Payable

 

Previous

54,150 / 26 x 15 x 40

= 12,49,615 Max. Rs. 10 lacs

25700 x 20 =

Rs 5,14,000

  

   10 lacs

 

Revised

56,180 / 26 x 15 x 40

= 12,96,460Max Rs. 10 lacs

42020 x 20 =

Rs 8,40,400

 

   10 lacs

 

d)  An Officer retiring in July, 2015 after 40 years’ service

 

( with Old Basic pay Rs. 40400 and revised Basic pay Rs. 66070 )

 

Eligibility as per the Act 

Eligibility as per  BPS

Paid/Payable

 

Previous

85,123/ 26 x 15 x 40

= 19,64,377 Max. Rs. 10 lacs

40,400 x 20 =

Rs 8,08,000

  

   10 lacs

 

Revised

88335 / 26 x 15 x 40

= 20,38,500 Max Rs. 10 lacs

85020 x 20 =

Rs 13,21,400

 

   13,21,400

 

Difference of Rs. 3,21,400 will be paid

 

 e)  An Officer retiring in July, 2015 after 40 years’ service

 

( with Old Basic pay Rs. 52000 and revised Basic pay Rs. 85000 )

 

Eligibility as per the Act 

Eligibility as per  BPS

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