Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Anonymousname (Business)     25 October 2019

Gratuity paymnt for employees of technical societies

Dear Sir I am from an Autonomous Telecom R&D centre of Govt of India, registered under societies registration act 1860. It is a registered public funded research institute with the Department of Scientific and Industrial Research, Ministry of Science and Technology. Government of India provides grant in aid to this organization for R&D activities. All the salaries of employees are from Govt fund. As of today, the employees are receiving salary as per the 7th pay commission. The 7th pay commission was implemented for all central government employees from 1st Jan 2016, during which the gratuity was increased from 10L to 20L. However, for our organization, the 7th pay commission was implemented from 2017, with arrears paid from 2016. Even after implementing 7th pay commission, our organization retained gratuity at 10Lakhs citing that the organization is covered under payment of gratuity act for which the then ceiling is 10L. My question is, for a government organization, how can an organization pick and choose components of recommendations of 7th pay commission and retaining gratuity at 10L? It is a matter of fact that the gratuity amendment bill was subsequently passed during March 2018 after which the gratuity got increased from 10L to 20L. what will happen to employees who retire/superannuate/resign between 2017 (when gratuity was 10L) and 2018 (when gratuity got amended to 20L)..? Though the employees are getting wages from Government, they are not treated at par with other government employees wrt Gratuity. Is it not violation of principles of natural justice..? Can the aggrieved employees approach court..?


 3 Replies

Hemant Agarwal ( Mumbai : 9820174108)     25 October 2019

1.  You are a Govt. aided entity (a regd. Society) and not a Govt. dept., /body. Can you claim Gratuity as given to Govt. employees. It is surprising how 7th pay comission criteria is applied to a non-govt. body.  Getting Salary from Govt. Fund, is in form of an Aid to the Society.

2. Anyways, make proper representations with the relevant ministry and follow-up consistently, with the logic posted herein.  It would work.

Keep Smiling .... Hemant Agarwal

Sb Karma   25 October 2019

Hello Anonymousname

It is the upper threshold of the limit not full amount,it's varry from designation to years of jobs.You can simply calculate on the following base


Gratuity in India is calculated using the formula:

Gratuity = Last Drawn Salary × 15/26 × No. of Years of Service

So just calculate!

If you found guilty towards your employer just go to local advocates,but before it just put an application before dept.head of your institution and get reply from him.It will  help you judicially to established your point.And even its happened then ask the dept. why they give less,under which section they are doing so.

After their reply only you or(advocates) can understand the point of your dept.

Hope it will clear lit'bit your doubt!

P. Venu (Advocate)     26 October 2019

The facts posted suggest that the employees in your organisation are entitled for gratuity under the Payment of Gratuity Act, and not under the CCS(pension) Rules. Enhancement of Gratuity in the former case is with effect from 29th March 2018 i.e. the date of notification of the amendment of the Act.

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