What is DCRG in Pension?

DCRG (Death-cum-Retirement Gratuity) in India is a one-time lump sum payment given to government employees upon retirement, superannuation, or death. It is governed by the Central Civil Services (Pension) Rules, 1972. The amount is calculated as:

NoBroker InstaCash Loan

Get upto Rs. 10 Lakhs Instantly in your Bank Account with hassle free auto repayment.

Instant approval and disbursement

Interest rate starting 12.99%

Withdraw now

DCRG = (Last Drawn Salary + Dearness Allowance) × Completed Service Years × 1/4 × 16

The maximum limit is Rs. 20 lakh. If an employee dies in service, nominees/legal heirs receive the gratuity. It provides financial security post-retirement or to the family in case of death. I hope this helps you understand what is DCRG in pension. 

The DCRG full form in pension is Death-cum-Retirement Gratuity. A lump sum payment provided based on the complete service of an employee upon retirement or death is known as a "Death-cum-Retirement Gratuity" (DCRG).

• It is computed as a certain number of months' compensation based on the employee's length of service. For each completed six-monthly period of qualifying service, an officer will receive a gratuity equal to one-fourth of their monthly emoluments, up to a maximum of 16 ½ times their monthly emoluments. The current Death Cum Retirement Gratuity limit has increased from Rs.3.50 lakh to Rs.7.00 lakh. Beginning on April 1, 2009, the D.C.R.G. increased limit went into force.

• Service as per the current rules, a person retiring with less than 10 years of service will still be eligible for a gratuity. For gratuities, employees must work for a minimum of 5 years, while for pensions, they must work for a minimum of 10 years. He forfeits his claim to a gratuity if he leaves for any other reason than to accept a new job with the government.

• If a government employee dies within five years of the date of retirement from service, becomes eligible for service gratuity or pension, and receives gratuity, pension, or commuted pension and the amount received is less than the amount equal to 12 times the employee's emoluments, his family is eligible for a residuary gratuity equal to the deficit.

The government worker is required to submit a nomination giving one or more people the right to receive the gratuity in accordance with the priority given to family members. The family will be in the following order for gratuity purposes:

• Wife, Wives, or Wives who have been judicially separated

• Husband, a separated or divorced husband

• Sons and stepsons adopted sons

• Unmarried daughters, daughters via adoption, stepdaughters,

• widowed daughters

• Adoptive parents

• Mother, Stepmother

• Brothers and stepbrothers under the age of 18

• Unmarried sisters, widowed sisters, and stepsisters

• Married daughters

• Children of predeceased son

I hope this answer on DCRG full form in pension helps:)

Read More:

In pension, there are many terms that we should know to avoid confusion. One of the important terms is DCRG. So, what is DCRG in pension? I will explain the term below. 

NoBroker InstaCash Loan

Get upto Rs. 10 Lakhs Instantly in your Bank Account with hassle free auto repayment.

Instant approval and disbursement

Interest rate starting 12.99%

Withdraw now

What is death cum retirement gratuity?

The full form of DCRG is death-cum-Retirement Gratuity. This is a huge amount of payment based on the total service of an employee either on retirement or death.

As per the death cum retirement gratuity under section 10 10, it is calculated as months' pay with reference to the employee’s service. The gratuity amount is one-fourth of the monthly emoluments of an employee for completion of every six-month period of qualifying service. The payment of gratuity is calculated to a maximum of 16 1/2 times monthly emoluments. The maximum Death cum Retirement Gratuity is between  Rs.3.50 lakh to 7.00 lakh.  This rule came to effect on 01/04/2009.

A person retiring with less than 10 years of service is admissible as per existing provisions. As an employee, you should complete 5 years of service to get your gratuity. But for pension, you need to complete 10 years of service. 

If a Government employee dies within 5 years from the date of retirement and service s/he becomes eligible for gratuity or pension. The amount received is equivalent to or less than 12 times his emoluments. The family of the employee is eligible for gratuity. I hope you know what is DCRG in pension. 

Read more: