Section 19(3) in Life Insurance Corporation of India Class III and Class IV Employees (Revision of Terms and Conditions of Service) Rules, 1985
(3)Gratuity admissible to a Class in or Class IV employee shall be determined in accordance with the provisions of sub-rule (2) or calculated under the Payment of Gratuity Act, 1972 (39 of 1972), whichever is more favourable to him.[Provided that] [Notified in Gazette of India dated 11.9.1986 and came into force w.e.f. 1.4.1983.] -(a)while calculating the gratuity under the said Act, the monthly salary/ of an employee shall be deemed to be his terminal basic pay, dearness allowance, additional dearness allowance and the special allowance as specified in the proviso in sub-rule (3) of rule 4 and sub-rule (3) of rule 6.(b)[ the provisions of the said Act shall apply notwithstanding that monthly salary of an employee calculated in accordance with clause (a) exceeds [(two thousand five hundred rupees)] [Notified in Gazette of India dated 22.8.88 and came into force w.e.f. 1.10.87.](c)in the case of an employee who dies while in 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.(d)the amount of gratuity calculated under the said Act shall in no case exceed [the maximum prescribed under the said Act] [Notified in Gazette of India dated 30.8.1999 and has come into force w.e.f. 24.5.1994.].
