Rules of Gratuity
Gratuity is payable under payment of Gratuity Act 1972. The amount will be payable @ 15 days wages for each completed year of service on the basis of 26 working days in a month subject to ceiling of Rs. 10.00 Lacs to those employees who have retired on after 24th May 2010.
For the purpose of gratuity, wages include the following:-
For Award Staff:-
Basic Pay+ DA+ Personal Allowance+ Acting Allowance+ FPP (Increment
Component) + PQP
For officer Staff:-
Basic Pay+ DA+ Personal Allowance+ PQP+ FPP (Increment Component)
Formula for calculation:-
Gratuity is calculated at the rate of 15 days wages for each completed year of service or part thereof in excess of 6 month on the basis of 26 working days in a month as per the following formula calculation based on 26 days will be effective from 23rd July 1980 vide C.0 letter No. ADM/044889 dated 11.10.1980 Wages*15* No. of years of service 26
For employee who are not member of State Bank of India Employees’ Pension fund and Who have put in minimum 10 years of service, are eligible for service gratuity as per service rule, on retirement, resignation etc. (for award 10 years service criteria is not applicable). It will be @ one month pay for each completed year of service, subject to maximum of 15 month pay +further additional gratuity @1/2 month pay for each completed years of service beyond 30 years of service, As per award, in case of death of award staff additional gratuity @1/4 of a month pay for every completed years of service is payable between 16th to 30th years of service. (Pay means Basic Pay+ PQP and increment component of FPP).