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Civil Service Personnel Rules Rule 246

246. In respect of calculating the amount of gratuity and pension:
(a) only the gratuity shall be granted in the following manner if ten years of qualifying service for pension is not completed:
(i) in the case of not completing five years of qualifying service for gratuity –

Term of service x last pay x 100% = gratuity

(ii) in the case of completing five years of qualifying service for gratuity but not completing ten years –

term of service x last pay x 150% = gratuity

(b) in the cases of superannuation pension, invalid pension and compensation pension after completing ten years and above of qualifying service for pension and in the cases of retiring and reduction pensions, the pension and gratuity shall be calculated as follows:
(i) term of service x last pay x 1.5% = pension
(ii) term of service x last pay x 50% = gratuity
(c) the Ministry of Finance may issue the order and amend the method of calculation for pension and gratuity with the approval of the Union Government.

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