Does government employees' leave qualify for gratuity? Know these 5 facts

Gratuity: Central government employees, do you know if your leaves qualify for gratuity? Under which rules is your gratuity governed? Who is to authorise payment of family pension and death gratuity when a Government servant dies while still on deputation? Do you know if your gratuity income is exempted from taxes? These are important questions which every central government employee should know in order avoid problems and also realise his/her long term financial goals.

Know these important 5 facts about your gratuity income:  

-- All leave for which leave salary is payable qualifies for pension and gratuity. Extraordinary leave (EOL) on medical certificate (MC) also qualifies for pension and gratuity. EOL without MC qualifies only on account of inability to join duty on civil commotion or when granted for a higher scientific & technical study qualifies.

-- In the case of a government servant who dies while on deputation to another Central Government department action to authorise death gratuity in accordance with the provisions of chapter IX of the pension Rules shall be taken by the Head of Office of the borrowing department.

-- In the case of a government servant who dies while on deputation to a state government or while on Foreign Service, action to authorise the payments of family pension and death gratuity in accordance with the provisions of Chapter IX of the pension Rules shall be taken by the Head of Office or the cadre authority which sanctioned the deputation of the government servant to the state government or to his Foreign Service.

-- Gratuity of the employees retiring from Central Government Departments is regulated by the Central Civil Services (Pension) Rules, 1972. There are separate rules regarding pension and gratuity of Railway employees and Defense personnel.

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-- Death gratuity/retirement gratuity are fully exempted from Income Tax.