The Department of Pension and Pensioners' Welfare (DoPPW) has recently issued an important clarification regarding the Central Civil Services (Payment of Gratuity under National Pension System) Amendment Rules, 2025. The new guidelines, outlined in an Office Memorandum dated December 26, 2025, specifically address the eligibility for gratuity for employees who are re-employed after previous service.
Here is a breakdown of the updated rules and how they affect different categories of employees:
1. Who Will Not Get Additional Gratuity?
According to the new Rule 4A, certain re-employed personnel will not be entitled to a separate or second gratuity for their period of re-employment. This applies to government employees who:
* Retired on superannuation, retirement, or compulsory retirement gratuity.
* Were dismissed or removed from service but are receiving a compassionate gratuity.
* Were subsequently re-employed in a government position.
In these cases, the service rendered during the re-employment phase does not qualify for an additional gratuity payout.
2. Rules for Transitions from PSUs/Autonomous Bodies
The memorandum clarifies the rules for employees moving from Autonomous Bodies or Public Sector Undertakings (PSUs) to government service:
* Eligibility: If an employee was originally appointed in an autonomous body or PSU and later joined government service with proper permission, they are eligible for gratuity for the period served under the government.
* The "Total Cap" Rule: This government gratuity is provided in addition to whatever they received from their previous employer. However, there is a limit: the combined total of the gratuity from the PSU/Autonomous body and the government service cannot exceed the maximum amount the employee would have received had their entire career been spent solely in government service (based on their final salary at retirement).
3. Purpose of the Clarification
The primary goal of this memorandum is to clear up confusion regarding military service and civil service transitions. Specifically, it addresses whether receiving gratuity for prior military service impacts eligibility for gratuity in a subsequent civil service role.
Summary for Employees
If you are an NPS subscriber and have been re-employed by the government after already receiving retirement benefits (or after being dismissed with a compassionate allowance), you will likely not be eligible for a second round of gratuity. However, if you moved from a PSU or an autonomous body to a government department with the necessary approvals, you remain eligible, provided the total payout across both organizations stays within the prescribed legal limits.
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