Death-cum-Retirement Gratuity (DCRG) is a lump sum payment to the employee on his retirement or to his family in the event of his death or superannuation depending on the case.

A Railway Servant who has completed five years qualifying service is granted retirement gratuity equal to 1/4thof his salary for each completed six monthly period of qualifying service subject to a maximum of16 ½ times the emoluments, provided that the amount of retirement gratuity payable shall, in no case exceed Rupees Twenty Lacs.

In the event of death of an employee during service, the Death Gratuity shall be admissible at the following rates:

Length of Service

Rate Gratuity

Less than ONE (1) year

2 times of Salary

More than ONE (1) year and Less than FIVE (5) Years

6 times of Salary

More than FIVE (5) years and Less than ELEVEN (11) Years

12 times of Salary

More than ELEVEN (11) years and Less than TWENTY (20) Years

20 times of Salary

More Than TWENTY (20) Years

Half Month’s Salary for every completed Six (6) monthly period of qualifying service subject to a maximum of 33 times of Salary

 

Accordingly, Rule 70 (1) (b) of Pension Rules shall stand modified to this extent.


6.2 The maximum limit of Retirement gratuity and death gratuity shall be Rs. 20 lakh. The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay. Accordingly, first proviso under Rule 70 (1) (b) of Pension Rules shall stand modified to this extent. (RBE No. 99/2016)


The Railway Servant shall make a nomination conferring on one or more persons the right to receive DCRG provided that if, at the time of making nomination, he has a family, the nomination shall not be in favour of any person other than the family members. For the purpose of DCRG, the ‘Family’ includes the following relatives of the Railway Servant: 
(i) Wife/Husband 
(ii) Sons
(iii) Un married and widowed Daughters
(iv) Father 
(v) Mother 
(vi) Brothers below the age of 18 years and unmarried sisters or widowed sisters.
(vii) Children of a pre deceased son 

In absence of any nomination, the Death Gratuity is paid in order of preference as mentioned above again. In case, the payment of DCRG is arranged late and the delay is attributed to administrative lapse, interest as per extant rate of interest on PF shall be payable for the period beyond 3 months after it became due. The powers to grant  interest rest with General Manager. 

What can be deducted from DCRG? 

(i) Any dues, if found outstanding, will be recovered from DCRG of the retired official. If they could not be recovered at the time of retirement then they can be recover ed from the Dearness Relief of the retiree’s pension, without the consent of the pensioner. of Railway Services (Pension) Rules 1993). (ii) (Rule 16(6) 

(ii) If the Railway Employee is in occupation of Railway Quarter, vacation of the Railway Quarter and proof of handing over to Engineering Department and clearance of recoverable Water charges, Lawn Charges and Electric Charges etc. is necessary before payment of gratuity.