Section 77(3A) in Life Insurance Corporation of India (Staff) Regulations, 1960
(3A)[ Where an employee is an employee in Class III or Class IV gratuity admissible in his case shall be determined in accordance with the provision of the foregoing sub-regulations or calculated (subject to the terms of the proviso herein) under the payment of Gratuity Act, 1972, as it stands on 24th January,1974 (hereinafter referred to as the said Act), whichever is more favourable to him:Provided that -(a)While calculating the gratuity under the said Act the monthly salary of an employee shall be deemed to be his terminal basic pay (including special pay), Dearness Allowance and additional Dearness Allowance;(b)the provisions of the said Act shall be applied notwithstanding that his monthly salary as above is over Rs. 1,000/- ;(c)in the case of an employee who dies while in the service of the Corporation after having completed 15 years of continuous service; the gratuity under the said Act shall be calculated at the rate of one month's salary for every completed year of service, and in all other cases at the same rate as specified in the said Act; and(d)where the gratuity calculated under the said Act in the manner specified herein exceeds Rs. 20,000/- the gratuity payable shall be deemed to be Rs. 20,000/- only.]
