Death-cum-Retirement Gratuity (DCRG) is a lump sum payment made based on the total service of an employee either on retirement or death.
It is calculated as so many months pay with reference to the employee's service. The amount of gratuity will be one fourth of the monthly emoluments of an officer for each completed six-monthly period of qualifying service subject to a maximum of 16 ½ times of the monthly emoluments. The existing maximum of Death Cum Retirement Gratuity has been enhanced from Rs.3.50 lakh to 7.00 lakh. The enhanced limit of D.C.R.G. shall be effective from 01/04/2009.
Service Gratuity to person retiring with less than 10 years of service will continue to be admissible as per existing provisions. An employee should have minimum service of 5 years to earn gratuity while for pension he has to put in a minimum service of 10 years. If he resigns for reasons other than to take up another employment in Government, he forfeits his right for gratuity.
If a Government employee dies within 5 years from the date of retirement from service and become eligible for service gratuity or pension and received gratuity, or pension or commuted pension and such amount received is less than the amount equal to 12 times of his emoluments, his family shall be eligible for a residuary gratuity equal to the deficiency.
The Government employee has to make a nomination conferring on one or more persons the right to receive the gratuity in accordance with the order of priority on the members of family. The family for purpose of gratuity will be in the order of:
If the deceased employee was a Divorcee without an issue, the gratuity shall be payable to other members of the family but no family pension will be paid. Non members of family mentioned in the succession certificate is not entitled to receive the gratuity.
If there is no nomination, then the order of priority for payment of the gratuity will be (i) items 1 to 4 in equal shares ; (ii) if items 1 to 4 are not alive then items 5 to 11 in equal shares. If the nominee is a minor, then the gratuity shall be paid to the guardian of the minor on production of guardianship certificate.
If any surviving member of the Government employee’s family who is eligible to receive the gratuity has not been heard of by those who would have heard of him/her, the share due to such person shall be paid to the surviving parent if such a persons is a minor for being paid as and when he/she is traced. If the person is a major, the share shall be paid to items 1 to 4 for being paid to him or her as and when the person is traced. If such a person has not been heard of for a period of 7 years, the person shall be deemed to be dead and the family members under items 1 to 4 have to share it equally.
If the deceased government servant has executed a nomination prior to his death and the nomination subsists, the Head of Office shall on receipt of death report of the government servant send intimation in Revised Form No.5 to the nominees for formal claim of gratuity to be submitted in Revised Form No.3.
However, if there is no nomination available or if the nomination does not subsists, then the Head of Office will send Revised Form No.6 to the family of the deceased seeking formal claim for grant of DCRG to be submitted in Revised Form No.3 to the Head of Office in equal shares.