ALL INDIA CANARA BANK RETI REES’ FEDERATION (Regd.

)
(Af f iliate d to All In dia Ban k Re tire e s ’ Fe de ration )
“A.K.Nayak Bhavan”, 2nd Floor,
14, Second Line Beach, Chennai – 600001.

Our Ref:42:2018 May 11, 2018

Chairman To: All Affiliates, Office Bearers & Central Committee Members
A.K.Bansal
Dear Sir/Madam,
President
Calculation of Gratuity as per Payment of Gratuity Act and
V.K.M.Varma
also as per Gratuity Rules (CBOSR) for Retiring Officers
Vice President
and Bipartite Settlement for Retiring Workmen

A.N.Balasubramanian You are aware that quantum of Gratuity has been enhanced from
Y.V.Subba Rao
Rs.10,00,000/- to Rs.20,00,000/- with effect from 29-03-2018. In this
V.Srinivasan
R.K.Dhawan regard, we have been receiving telephonic queries from our retiring
colleagues as to their entitlement under the Act.
General Secretary
S.V.Srinivasan Furnished here below is procedural aspects involved in calculating the
amount of Gratuity payable to retiring employees:
Joint Genl. Secretary
K.R.Manohar Gratuity as per Payment of Gratuity Act 1972:
Secretary
1. Gratuity is paid after completion of 5 years of continuous service.
K.Shanmugam
M.Balasubramanian 2. Formula: BP + DA + FPA/PQA X 15 Days X Number of Years divided
B.Venkat Rao by 26
M.K.Saha
Anil Sood 3. Fraction of a year in excess of 6 months is to be calculated as full
B.S.A.Rao
year
P.Giridharan
4. Maximum Amount of Gratuity payable under the Act is
Organising Secretary
Rs.20,00,000/- with effect from 29-03-2018.
R.Sudalaimuthu
M.Venugopalan Gratuity as per CBOSR for Officers and as per Bipartite Settlement
A.P.Raveendranath for Award Staff:
S.K.Madan
A.Yella Rao a. Gratuity is paid after completion of 10 years of continuous service;
K.R.Parasuraman
Krishnappa P Salian b. Formula: (BP + PQP/PQA + FPP/FPA) X Number of Years;
S.Muthukrishnan
U.Subba Rao c. One month for each completed year of service up to 15 years;

Treasurer d. For service exceeding 15 years up to 30 years, Gratuity is

calculated by multiplying by 15;
A.B.Kasturirangan
e. For service exceeding 30 years: ½ month for each completed year
Assistant Treasurer
of service;
R.Ravishankar
f. Fraction in excess of 6 months and more, amount is paid Pro-rata
in the case of Officers and counted as full year in the case of
Workmen;

Ph (O) LL: 044 – 25220611 Mobile: +91 94442 32867

1
E-Mail: aicbrf2010@gmail.com Website: www.aicbrf.in
 g. There is no maximum limit under CBOSR or under Gratuity Fund Rules;

h. There will be no forfeiture of gratuity for dismissal on account of misconduct

except in cases where such misconduct caused financial loss to the bank and
in that case to that extent only.

Illustration: Number of years of service: 35 years 11 Months and 26 Days

(rounded to 36 years)
Basic Pay: 85000 00
D.A.: 44726 88
FPP: 02351 00
PQA: 01680 00
---------------
Total: 133757 88
---------------
Calculation as per Act: 133757.88 X 15 X 36 Divided by 26 = Rs.27,78,048/27
(Maximum Amount Payable is Rs.20,00,000/- as per Act)

Gratuity calculation as per Gratuity Rules (CBOSR) for Officers and Gratuity
Fund Rules/Bipartite Settlement for Award Staff:

Example:

Basic Pay Rs.85000/- + FPP Rs.2120/- + PQA Rs.1680/- = Rs.88800/-

Number of Years of service: 35 Years 11 Months and 26 days ( 2 days of LoP)

Hence service for Gratuity calculation is taken as:35 Years 11 Months and 24
(26 - 2) Days.

Actual calculation will be as follows:

Rs.88800/- X 35 years Divided by 2 Rs.15,54,000/-

Rs.88800/- X 11 months Divided by 12 divided by 2: Rs. 40,700/-
Rs.88800/- X 24 days Divided by 360 divided by 2: Rs. 2,960/-
-------------------
Total: Rs.15,97,660/-
-------------------
It may please be noted that the bank will calculate the entitlement both in terms of
Gratuity Act, 1972 and also in terms of CBOSR/Bipartite Settlement and the higher
of the two will be paid to retiring employee.

We request our functionaries to please respond to queries from retiring employees

in the light of the above clarifications. With Warm Greetings,
Yours Sincerely,

(S.V.SRINIVASAN)
GENERAL SECRETARY