Retirement Gratuity Formula Minimum Service GO 14 Dated 30-1-1999 APRPR Rule 46

Retirement Gratuity Formula Minimum Service GO 14 Dated 30-1-1999 APRPR Rule 46. AP RPS 1980 Rule 46 deals with Retirement Gratuity of AP and Telangana Employees. As per the Andhra Pradesh Revised Pension Rules 1980 Rule 46 and GO No 14 Fin & Plg Dated 30-1-1999 the complete details of Calculation of Retirement Gratuity can be learnt. The Formula for Calculation of Retirement Gratuity is available vide GO 14 dated 30.1.1999. Let us the details of Formula and Rules of Retirement Gratuity, Eligibility and Minimum Service Required for Retirement Gratuity for AP & Telangana Employees, who were appointed before 1.9.2004 presented by apteachers.in

Retirement Gratuity Formula Minimum Service GO 14 Dated 30-1-1999 APRPS Rule 46

We have divided the information in three parts.

• 1. Eligibility and Minimum Service Required for Retirement Gratuity
• 2. Formula of Retirement Gratuity
• 4. Example for Calculation of Retirement Gratuity

Eligibility & Minimum Service Required for Retirement Gratuity

As per the Rule 46 (1)(a) of Andhra Pradesh Revised Pension Rules 1980 / APRPS 1980:: 

"A Government servant, who has completed five years qualifying service and has become eligible for service gratuity or pension under Rule 45 shall on his retirement, be granted retirement gratuity:"

Hence from the above statement and rule it is clear that a AP / Telangana Government Servant who has completed five years and retired is eligible for sanction of Retirement Gratuity. A Govt servant who has retired without completion of five years of Service is not eligible for Retirement Gratuity.

Formula :: Retirement Gratuity Calculation Formula

This is the second item of our post at apteachers.in. As per the Rule position, Retirement Gratuity for The employees who have retired after 30-1-1999, the Para (3) of the GO No 14 Fin & Plg Dated 30-1-1999 is as follows:

The Government also hereby order that the Retirement Gratuity under Rule 46 (1)(a) of Revised Pension Rules 1980 shall be granted equal to 1/4th of the Pay Last Drawn for each completed six monthly periods of service (Subject to a maximum of sixty six times of such six monthly periods) or 16 1/2 (Sixteen and half) months pay last drawn or Rs.1,75,000 whichever is less. Emoluments for this purpose shall be as defined in Rule 31 of Revised Pension Rules, 1980.

Note:

• The maximum ceiling amount is amended from time to time.
• Last Pay Drawn includes Basic Pay and DA.(this will be discussed in another post at apteachers.in)
• The Total Number of Six monthly periods shall not exceed 66.
• A fraction of year : 3 months or more be treated as 1 half year.

Explanation:
There are three conditions mentioned in this rule and out of the three conditions, the least one will be sanctioned as Retirement gratuity.

1. 1st One: 1/4th of the Last Pay Drawn (Basic Pay + DA) x Half Yearly Service Units/Six Monthly Periods. ( Each Six Months period is taken One Half Yearly Service Unit. For example for 6 years service, there will be 12 six monthly service periods and for 6 years 7 months service there will be 13 six monthly service periods)
2. 2nd One: 16 1/2 x Last Pay Drawn ( means 16.5 times of Last pay drawn)
3. 3rd One: Maximum Ceiling Limit of 12 Lakhs for employees retired on or after 2.6.2014 ( As per G.O .Ms No. 51 Finance (Pen.I) Department dated 01.04.2011 it is currently Rs. 8,00,000/-  and Recently amended vide RPS 2015. Orders already issued for TG State).

The Least of the above three will be sanctioned as Retirement Gratuity for that Employee.

Example for Calculation of Retirement Gratuity using Formula

Let us see the Illustration:

Calculate the Retirement gratuity of an Employee, who retired on 31.5.2013 after completing 30 years and 7 months service drawing a Basic Pay of Rs. 19050.

• Length of Service 30 Years 7 Months. For 30 Years, six monthly service units be 30 x 2 = 60 and for 7 months = 1 six monthly service unit. hence Total six monthly service units are 61.
• Last Basic Pay = 19050
• DA as on 31.1.2013 is 54.784% = 10436

1st Case: 1/4th of the Last Pay Drawn (Basic Pay + DA) x Six Monthly Periods = 1/4 x (19050+10436) x 61 = 449662

2nd Case: 16 1/2 x Last Pay Drawn = 16.5 x 29486 = 486519

3rd Case : 8 Lakhs (As per G.O .Ms No. 51 Finance (Pen.I) Department dated 01.04.2011 it is Rs. 8,00,000/- ). Hence from the above calculations employee is eligible for 449662 rupees of retirement gratuity. This is also useful for EOT Deoartment Test conducted by APPSC. These are the details of Retirement gratuity Calculation and Formula.