Archive · 28 Oct 2025
Govt Clarifies Gratuity Eligibility Under NPS for Central Employees
The government is explaining how gratuity works for its workers who are under the NPS.
Gratuity is like a bonus paid when they retire or if they die while working.
To get the retirement bonus, you usually need to work at least 5 years.
It's calculated based on your pay.
There's a set amount, but there's a limit to how much you can receive.
If someone dies while employed, their family gets a gratuity, regardless of how long they worked.
If you quit, you usually lose your past benefits, unless you move to another government job or a government-run company, where those benefits are often preserved.
The clarification concerns gratuity eligibility for central government employees under the NPS.
Retirement gratuity requires a minimum of 5 years of service.
Retirement gratuity is calculated based on basic pay and dearness allowance (DA).
Death gratuity is a one-time payment for a government servant's family, irrespective of service length.
Resignation typically forfeits past service benefits, except in specific cases.
- Who
- Central government employees under the National Pension System (NPS).
- What
- Clarification on gratuity eligibility.
- When
- No specific date is mentioned in the articles, but this is a recent clarification.
- Where
- India (for central government employees).
- Why
- To clarify eligibility criteria for retirement and death gratuity.
- Focus
- Clarification on gratuity for central government employees under NPS
- Governing Rules
- Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021
- Minimum Service
- 5 years required for retirement gratuity eligibility
- Retirement Gratuity Calculation
- 1/4th of a month’s basic pay + DA for each 6-month period
- Maximum Gratuity
- Rs 25 lakh (16.5 times basic pay + DA)
- Death Gratuity
- Paid to nominee/family; no minimum service needed
- Resignation Impact
- Generally forfeits past service benefits; exceptions apply