NPS: New retirement gratuity payment, payment calculation rules notified for Central Government Employees - Check details

The Central Government has notified the Central Civil Services (Payment of Gratuity under National Payment System) Rules, 2021. This rule of payment of gratuity will be applicable to the employees of the Central Government.  

This will also include civilian government servants appointed for the posts of the Defence Service and the Civil Service for the Centre. For those who have been appointed on or after the first day of January 2004, this rule will be applicable. 

According to the gazette notification, any further claims made for gratuity will be applicable as per the new rule. It will be seen whether a government employee is retiring, or has retired, whether he has been discharged, whether he has been allowed to retire from service or has died. Gratuity will be claimed accordingly, whatever the situation may be with the employee. 

The date on which a government servant retires or is about to retire or is discharged or has been approved to resign, that day will be considered as the last working day of the employee and gratuity will be calculated accordingly. On the day of the death of a government employee, the gratuity will be calculated considering that day as a working day. 

Eligibility for Retirement Gratuity
According to the notification of the Central Government, retirement gratuity will be given to a government employee only when he completes 5 years of his service. Along with this, the conditions mentioned below must be fulfilled. The employee should retire at the age of superannuation or invalidation, or the employee has retired or is about to retire before the age of superannuation. 

The President reserves the right of withholding gratuity, either in full or in part, and of ordering recovery from gratuity of the whole or part of any pecuniary loss caused to the government, if, in any departmental or judicial proceedings instituted while the government servant was in service, the retired government servant is found guilty of grave misconduct or negligence.  

Provided that the Union Public Service Commission shall be consulted before any final orders are passed by the President under this rule: The departmental proceedings referred to in sub-rule (1), shall, after the retirement of the government servant, be deemed to be proceedings under this rule and shall be continued and concluded by the authority by which they were commenced in the same manner as if the government servant had continued in service. Provided that in all cases where the departmental proceedings are instituted by an authority subordinate to the President, that authority shall submit a report recording its findings to the President. 

No gratuity shall be payable to the government servant until the conclusion of the departmental or judicial proceedings referred to in sub-rule (1) and issue of final orders thereon. 

Payment calculation 
The employee will be given the basis of his total remuneration. Gratuity will be one-fourth of the total remuneration for the 6 months completed in the job. This maximum can be up to 16 and half times of the total remuneration. Here the total remuneration means how much basic payment the government employee was getting before retirement or on the day of death. If the employee was posted as a doctor, then non-practicing allowance will also be added to his basic payment.

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