Gratuity rules for government employees under NPS – Check details

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October 16, 2021 5:28 PM

These rules will apply to the government employees including civilian government employees in the Defence Services who have joined on or after January 1, 2004.

Gratuity rules for central government employees under NPS, gratuity for NPS employees, on resignation, rules, government employees, Payment of Gratuity under National Pension System RulesThe amount of retirement gratuity or death gratuity payable under this rule shall in no case exceed Rs 20 lakh.

The Department of Pension and Pensioners’ Welfare under Ministry of Personnel, Public Grievances and Pensions has issued a notification on Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021. These rules will apply to the government employees including civilian government employees in the Defence Services who have joined on or after January 1, 2004, and to whom the Central Civil Services (Implementation of National Pension System) Rules, 2021 applies.

Few Key Features of Payment of Gratuity under National Pension System Rules

1. Any claim to gratuity will be regulated by the provisions of these rules in force at the time when a Government employee retires or is retired or is discharged or is allowed to resign from service or dies, as the case may be.

2. The amount of retirement gratuity or death gratuity payable under this rule shall in no case exceed Rs 20 lakh.

3. Emoluments for the purpose of determining the amount of gratuity payable under these rules will include the basic pay which a Government employee was receiving immediately before his retirement or on the date of his death and shall also include non-practicing allowance granted to medical officer in lieu of private practice

4. Average emoluments shall be determined with reference to the emoluments drawn by a Government employee during the last ten months of his service. The dearness allowance admissible on the date of retirement or death, as the case may be, will also be treated as emoluments for the purpose of this rule.

5. Retirement gratuity or death gratuity for the government employee who has completed five years’ qualifying service will be equal to one-fourth of his emoluments for each completed six monthly period of qualifying service, subject to a maximum of 16½ times the emoluments. It will be payable in these circumstances:

(i) retires on attaining the age of superannuation, or on invalidation, or

(ii) retires or is retired, in advance of the age of superannuation, or

(iii) On opting for Special Voluntary Retirement Scheme relating to voluntary retirement of surplus employees; or

(iv) On being permitted to be absorbed in a service or post in or under a Corporation or Company wholly or substantially owned or controlled by the Central Government or a State Government or in or under a body controlled or financed by the Central Government or a State Government, on retirement.

6. In the case of death, the gratuity payable will be paid to the person or persons on whom the right to receive the gratuity is conferred by means of a nomination

7. In all cases where the payment of gratuity has been authorised later than the date when its payment becomes due, including the cases of retirement otherwise than on superannuation, and it is clearly established that the delay in payment was attributable to administrative reasons or lapses, interest shall be paid at the rate and manner applicable to Public Provident Fund amount in accordance with the instructions issued from time to time:

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