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September 27, 2021 12:29 PM

The Central Government recently notified Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021. 

These gratuity payment rules will apply to Central Government servants including civilian Government servants in the Defence Services, appointed substantively to civil services and posts in connection with the affairs of the Union on or after the 1st day of January 2004.

As per the Gazette notification, any claim to gratuity will be regulated by the provisions of these rules in force at the time when a Government servant retires or is retired or is discharged or is allowed to resign from service or dies, as the case may be.

Also, the day on which a Government servant retires or is retired or is discharged or is allowed to resign from service, as the case may be, will be treated as his last working day and the date of death of a Government servant will also be treated as a working day.

Retirement gratuity eligibility 

According to the notification, retirement gratuity will be payable to a Government servant, who has completed five years’ qualifying service and

  • retires on attaining the age of superannuation, or on invalidation; or
  • who retires or is retired, in advance of the age of superannuation; or
  • who on being declared surplus to the establishment in which he was serving, opts for Special Voluntary Retirement Scheme relating to voluntary retirement of surplus employees; or
  • who has been permitted to be absorbed in 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.

Gratuity payment calculation

The retirement gratuity to be paid in the above cases will be equal to one-fourth of the employee’s emoluments for each completed six monthly periods of qualifying service, subject to a maximum of 16½ times the emoluments.

Emoluments would mean the basic pay which a Government servant was getting immediately before his retirement or on the date of his death. In the case of doctors, emoluments will also include a non-practising allowance granted to a medical officer in lieu of private practice.

“The Qualifying” service of the Government servant will commence from the date he takes charge of the post to which he is first appointed either substantively or in an officiating or temporary capacity. However, here the officiating or temporary service should be followed without interruption by substantive appointment in the same of another service or post.

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