46. Retirement Gratuity :-
1
[(1) (a) 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:-
(A) In case he draws pay in Revised Scales of Pay 1993, a sum
equal to:-
(i) 1/4th of emoluments for each completed six monthly period of
service, subject to a maximum of fifteen times the emoluments
or Rupees sixty five thousands whichever is less; or
(ii) 3/16th of emoluments for each completed six monthly period
of service, subject to a maximum of 12.375 times the
emoluments or Rupees one lakh, whichever is less;
in accordance with the choice exercised by him in this behalf; and
(B) In case he does not draw pay in the Revised Scales of Pay
1993, a sum equal to:-
(i) 1/3rd of emoluments for each completed six monthly period of service, subject to a maximum of twenty times the
emoluments, or Rupees fifty thousands, whichever is less; or
(ii) 1/4th of emoluments for each completed six monthly period of
service subject to a maximum of 16 1/2 times the emoluments,
or Rupees one lakh whichever is less;
in accordance with the choice exercised by him in this behalf ;
(b) If a Government servant dies while in service after completing
five years qualifying service, the amount of retirement gratuity
shall be calculated as if he had 18 years of qualifying service
or his actual qualifying service, whichever is more; and it shall be
paid to his family in the manner indicated in sub rule (1) of Rule
47]
1
[(1-A) Interest shall be allowed on delayed payment of retirement
gratuity as prescribed from time to time subject to the following
conditions, namely :-
(i) the sanction of Government in the administrative Department
concerned should be obtained with the concurrence of the Finance Department
for payment of interest in every case, explaining the reasons for the delay in
the payment of gratuity. In all cases where interest has to be paid to a retired
Government servant under this sub-rule action should be taken against the
officer responsible for the delay in sanctioning the gratuity. (ii) where disciplinary or judicial proceedings against a Government
servant are pending on the date of his retirement, provisional pension is
authorised under Article 351-B of Andhra Pradesh Pension Code - Volume
I/Rule 52 of the Andhra Pradesh Revised Pension Rules, 1980. No gratuity
is paid in such cases until the conclusion of the proceedings and issue of
final orders thereon. The gratuity, if allowed to be drawn by the competent
authority on conclusion of the proceedings will be deemed to have fallen due
on the date of issue of final orders by the competent authority in such proceedings. (iii) these orders shall not apply to arrears of gratuity which may
become due as a result of enhancement of the emoluments after retirement
or liberalisation in the pension rules, from a date prior to the date of retirement
of the Government servant, and
(iv) interest will be allowed only where it is clearly established that
the payment of Retirement Gratuity was delayed on account of administrative
lapse or for reasons beyond the control of the Government servant concerned.]
1
[(2) If a Government servant, who has become eligible for a service
gratuity or pension, dies within five years from the date of his retirement from
service, including compulsory retirement as a penalty, and the sums actually
received by him at the time of his death on account of such gratuity or pension
including relief on pension admissible from time to time, if any, together with
the retirement gratuity admissible under sub-rule (1) and the commuted value
of any portion of pension commuted by him are less than the amount equal to
gratuity calculated in the manner laid down in sub-rule (1) (a) on the basis of
18 years qualifying service, a residuary gratuity equal to the deficiency may
be granted to his family in the manner indicated in sub-rule (1) of Rule 47.]
2
(3) (a) If a Government servant dies in the first year of qualifying service
a retirement gratuity equal to gratuity calculated in the manner
laid down in sub-rule (1) (a) on the basis of 3 years qualifying
service, shall be paid to his family in the manner indicated in
sub-rule (1) of Rule 47.
(b) If a Government servant dies after completion of one year
qualifying service but before completing five years of qualifying
service, the amount of retirement gratuity shall be equal to
gratuity calculated in the manner laid down in the sub-rule (1)(a)
on the basis of 9 years qualifying service]
(4) The emoluments for the purpose of gratuity admissible under
this rule [3
] shall be reckoned in accordance with rule 31:
Provided that if the emoluments of a Government servant have been reduced during the last ten months of his service otherwise than as penalty,
average emoluments as referred to in Rule 32 may, at the discretion of the
pension sanctioning authority, be treated as emoluments.
(5) For the purposes of this rule and Rules 47, 48 and 49 ‘family’
in relation to a Government servant, means:-
(i) Wife or wives in the case of a male Government servant,
(ii) Husband, in the case of a female Government servant,
(iii) Sons including step sons, posthumous son, and adopted sons
(whose personal law permits such adoption)
(iv) Unmarried daughters including step daughters, posthumous
daughters and adopted daughters. (whose personal law
permits such adoption)
(v) Widowed daughters including step daughters an adopted
daughters,
(vi) father (including adoptive parents in the case of
(vii) mother individualswhose personal law permits adoption,)
(viii) Brothers below the age of 18 years including step brothers.
(ix) Unmarried sisters and widowed sisters including step sisters
(x) married daughters, and
(xi) Children of a pre-deceased son.
1
[Note :- The amount of retirement gratuity shall be fixed and be
expressed in whole rupees and where the retirement gratuity
contains a fraction of a rupee, it shall be rounded off to the
next higher rupee]
2
[(6)] Recovery and adjustment of government dues :-
(1) It shall be the duty of the head of Office to ascertain and assess
the Government dues payable by a Government servant due
for retirement. (2) The Government dues as ascertained and assessed by the
Head of office which remain outstanding till the date of retirement
of the Government servant shall be adjusted against the amount
of retirement gratuity becoming payable.
(3) The expression “Government dues” includes.-
(a) dues pertaining to Government accomodation including arrears
of licence fee if any.
(b) dues relating to balance of house building or conveyance or
any other advance, over payment of pay and allowances or
leave salary, and arrears of income-tax deductible at source
under the Income-Tax Act, 1961, and any other amounts due
to Government.
(c) amounts specified in Sub-rule (7) of rule 9 of the Andhra
Pradesh Revised Pension Rules, 1980].
Executive Instructions
(a) Failure to exercise option for alternative formula:-
With effect from 31-3-1990, the alternative formula for Retirement
Gratuity has to be allowed basing on the option exercised by the Government
servant/family members of the deceased Government servants within the
time limits specified therein. If the option was not exercised, the Retirement
Gratuity has to be calculated under the formula whichever is beneficial to
the employee.
(G.O. Ms. No.242, Fin. & Plg. (FW:Pen.I) Dept., dated 4-5-1990)
(b) Rate of interest on Gratuity:-
(i) The rate of interest on belated payment of Retirement Gratuity
was 5% for the period beyond three months.
(G.O. Ms. No.116, Fin. & Plg. (FW:Pen.I) Dept., dated 7-4-1980)
(ii) Interest may be allowed to those who retire or die while in
service on or after 7-10-1986, on delayed payment of
Retirement Gratuity at the rate of 7% per annum for the period beyond three months and upto one year and beyond one year
at 10% per annum, after the gratuity becomes due and payable
till the end of the month preceding the month in which the
payment is actually made.
(G.O. Ms. No.268, Fin. & Plg. (FW:Pen.I) Dept., dated 7-10-1986.
(c) Simplified procedure to settle the cases of employees who
die while in service:-
If the deceased Government servant, on the date of death has rendered
more than five years but less than eighteen years of qualifying service and
the spell of last five years service has been verified and accepted by the Head
of Office/Department, the amount of Retirement Gratuity shall be subject to
the minimum specified in Rule 46(1)(b). Where the verified and accepted
service is less than five years of qualifying service, the amount of Service
Gratuity shall be as in rule 46(3). If he had rendered more than Eighteen years
of service and the entire service is not capable of being verified and accepted,
the family of the deceased Government servant, shall be allowed Retirement
Gratuity as per rule 46(1)(b) on provisional basis. Final amount of the
Retirement Gratuity shall be determined by the Head of the Office/Department
on the acceptance and verification of entire spell of service which shall be
done by the Head of Office/Department within a period of 6 months from the
date of payment of provisional gratuity was issued. The balance, if any,
becoming payable as a result of determination of the final amount of Retirement
Gratuity shall then be authorised to the beneficiaries.
(G.O. Ms. No.78, Fin. &Plg. (FW:Pen.I) Dept., dated 4-3-1983)
(d) Retirement Gratuity is not admissible to the second wife:
Retirement Gratuity is not admissible to the second wife, as marrying
another wife (when one wife is living) without obtaining the approval of
Government, is contrary to Rule 25 of A.P. Civil Services (Conduct) Rules,
1964.
(Circular Memo No.11027-B/26/Pen.I/87, dated 20-8-1991 of Fin. & Plg.
(FW:Pen.I) Dept.)
(e) Enhancement of maximum limit of Retirement Gratuity :-
The retirement gratuity under sub-rule 1(a) of these rules shall be
granted equal to 1/4th of pay last drawn for each completed six monthly periods of service (subject to max of 66 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. The relevant provision shall be deemed to have been
modified to the extent of these orders from the date of issue (i.e.) 30-1-99,
and enhancement apply to those who retired/whose death taken place on or
after 30-1-99.
[G.O.Ms.No. 14, F&P (FW.Pen.I) Dept., dt 30-1-99]
(f) Enhancement of maximum limit of Retirement Gratuity
w.e.f 01-04-99 :-
The maximum of limit of Retirement Gratuity under this rule be raised
to Rs. 2.50,000/- from Rs. 1,75,000/- w.e.f. 1-4-99. The formula for calculation
of Retirement Gratuity shall be as ordered in para 3 of G.O.Ms.No. 14, F&P
(FW.Pen.I) Dept. dt 30-1-99 as specified in the above instructions. These
orders shall apply to all government servant who retired or whose death taken
place on or after 1-4-99.
[G.O.Ms.No 157, F&P (FW.Pen.I) Dept., dt 16-9-99]