The minimum period of qualifying service for earning service gratuity is 5 years ( without weightage).
The service gratuity is admissible at the rate of 1/2 a month's reckonable emoluments (Pay, plus Grade pay plus MSP plus ‘X’ group pay, including classification allowance, if any and DA admissible on the date of discharge) for each completed six monthly period of actual qualifying service rendered.
An individual dismissed from service under the Army Act is ineligible for pension / gratuity in respect of his previous service. However in exceptional cases, he may at the discretion of the President, be granted service pension or gratuity at a rate not exceeding that for which he would have normally qualified.
Individuals removed from service under section 20 of the Army Act may also be considered for grant of pension/ gratuity by the competent authority i.e. Government of India subject to the reduction in amount of pension/ gratuity if considered necessary on the merits of each case.
An individual who has completed 5 years qualifying service and is eligible for service/invalid gratuity or pension of any type, shall be granted Retirement Gratuity equal to 1/4 of reckonable emoluments (Pay, plus DP including classification allowance if any, plus dearness relief on the date of discharge/invalidment) subject to maximum of 16½ times of the reckonable emoluments restricted to Rs. 10 Lakhs.
Death gratuity at the following rates is admissible in the event of death in harness: -
Length of Qualifying Service
Rate of Death Gratuity
Less than one year
Two times of reckonable emoluments.
One year or more but less than 5 years
Six times of reckonable emoluments.
Five yrs or more but less than 20 yrs
Twelve times of reckonable emoluments
20 years or more
Half of the reckonable emoluments for each completed six monthly period of qualifying service subject to a min. of 12 times and a maximum of 33 times of the reckonable emoluments with a overriding ceiling of Rs. 10 lakhs.