—(1) Subject to this regulation, a member serving under a contract may, on satisfactory completion of the full period of the contract, be granted a gratuity at such rates as the Armed Forces Council may, from time to time by a general order, determine for each complete month that he has served under the contract less any period or periods that would have been deducted under regulation 18 if the member had been in the pensionable service.
(2) The Armed Forces Council may, by general order, prescribe the circumstances and the conditions under which a member may opt to receive the gratuity referred to in paragraph (1) or part thereof in advance.
(3) If in any case the member does not satisfactorily complete the full period of his contract or his contract service is converted to pensionable service, he may be required to refund the said gratuity, together with any interest stipulated in the option, in which case the said gratuity and interest, if any, shall be recoverable as a debt due to the Government and may be set off against any sum that may be payable by the Government to that member.
(4) The Armed Forces Council may, by general order, allow a member to retain any gratuity paid in advance pursuant to paragraph (2) where the contract service of the member is converted to pensionable service, except that such sum shall be deducted from any gratuity that may be awarded under regulation 28(1).
(5) The amount of gratuity to be granted to any member under paragraph (1) shall not be less than the amount of gratuity which would have been payable to him on the completion of his contract determined on the basis of the rate and terms of remuneration in force at the commencement of his contract.