8 months ago
Government Clarifies Gratuity Rules for NPS Employees
The government has clarified the rules about gratuity for employees who are part of the National Pension System (NPS).
If an employee has worked in both the government and a PSU or autonomous body, the total gratuity they receive cannot be more than what they would get if they had worked only in the government.
If an employee is re-employed after retirement, they won't get a separate gratuity for the new period.
However, if someone served in the military and then joined the civil service, the gratuity from the civil service won't be reduced because of the military gratuity.
These rules help make it clearer for employees and pensioners.
Gratuity limit applies to total gratuity from multiple services for NPS employees.
Re-employed employees do not receive separate gratuity for the re-employment period.
Employees moving from PSUs/autonomous bodies to government service receive gratuity from both, but the total cannot exceed the central government gratuity.
Military service gratuity does not affect civil service gratuity for re-employed personnel.
The clarification aims to resolve doubts and make gratuity rules clearer for employees and pensioners.
- Who
- Central government employees covered under NPS
- What
- Clarification on gratuity rules and limits
- Where
- India (central government employees)
- When
- Recent (specific date not mentioned)
- Why
- To resolve doubts and clarify gratuity eligibility and limits
Key facts
- Gratuity Limit
- Applies to total gratuity from multiple services
- Re-employment Rule
- No separate gratuity for re-employment period
- PSU to Government Service
- Gratuity from both sources, but total cannot exceed central government gratuity
- Military to Civil Service
- No gratuity limit for civil service gratuity
- Authoritative Body
- Department of Pension and Pensioners’ Welfare
Quotes
Ministry of Personnel, Public Grievances and Pensions
The Ministry of Personnel, Public Grievances and Pensions is the department responsible for issuing guidelines and clarifications on pension and gratuity rules for government employees.
“In accordance with rule 4A of the Central Civil Services (Payment of Gratuity National Pension System) Amendment Rules, 2025, a Government servant who, having retired on superannuation gratuity or retiring gratuity or compulsory retirement gratuity or who is in receipt of a compassionate gratuity on having been dismissed or removed from service, is subsequently re-employed, shall not be entitled to a separate gratuity for the period of his re-employment…”
financialexpress.com
Sources
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