What is the statutory cap on Central Government gratuity?

The statutory ceiling on Central Government retirement gratuity is ₹20 Lakhs under CCS (Pension) Rules and the Payment of Gratuity Act, which is 100% tax-free for government servants.

What is the tax exemption limit on Leave Encashment?

For Central Government employees, leave encashment of up to 300 days Earned Leave received on superannuation is completely exempt from income tax under Section 10(10AA).

Gratuity, Leave Encashment & Tour TA/DA | 7th CPC Terminal Benefits

Retirement Lump Sum Assessment

Compute your terminal gratuity and leave encashment payout

Terminal Lump Sum Cash Disbursal

Tax-Exempt

Total Terminal Lump Sum Cash ₹0 Combined Gratuity + Total Leave Encashment

Monthly Emoluments (Basic + DA) ₹0

Retirement Gratuity 15/26 formula capped at ₹20 Lakhs ₹0

Cap of ₹20,00,000 applied

Leave Encashment (300 Days) 300 days EL balance ₹0

100% Tax-Free under Sec 10(10AA)

7th CPC Tour TA & Daily Allowance Lookup

Official travel, hotel accommodation, and food bill limits on official tour

Travel Mode Air: Economy / Train: AC 2-Tier

Hotel Ceiling / Day ₹2,250 per day

Daily Food Allowance ₹900 per day

LTC (Leave Travel Concession)

Central Government employees can encash up to 10 days of Earned Leave (EL) at the time of availing LTC, subject to a lifetime maximum of 60 days.

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Statutory Retirement Gratuity & Leave Encashment Rules

Upon superannuation, permanent Central Government employees receive two major tax-free terminal lump-sum benefits: Retirement Gratuity under CCS (Pension) Rules and Leave Encashment for unutilized leave credits.

The Statutory 15/26 Gratuity Formula

Gratuity = (15 × Emoluments (Basic + DA) × Completed Years of Service) ÷ 26

The divisor 26 represents the total working days in a calendar month (excluding Sundays). The maximum gratuity payable is capped statutorily at ₹20 Lakhs.