1. Pension
A major benefit is the monthly pension, which is generally 50% of the last drawn basic salary plus dearness allowance (DA).
2. Gratuity
Gratuity is a lump sum amount paid at retirement.
It is calculated based on the formula:
Gratuity = (Last drawn basic salary + DA) × 15 × Years of Service ÷ 26
The maximum limit is currently ₹20 lakhs (as per government rules).
3. Commutation of Pension
Employees can opt to take a lump sum advance of pension (commuted pension).
Up to 40% of the pension can be commuted, and the balance continues as a reduced monthly pension.
4. Leave Encashment
Unused earned leaves are converted into cash at the time of retirement.
The maximum limit is up to 300 days of earned leave, depending on leave balance
5. Provident Fund (PF)
Contributions made to the General Provident Fund (GPF) or Employees’ Provident Fund (EPF) during service, along with interest, are paid at retirement.
6. Other Benefits
Medical facilities under CGHS (Central Government Health Scheme) or state health schemes.
Insurance cover if enrolled in government group insurance.
Some departments also provide retirement farewell packages, welfare funds, or housing benefits.
