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New Gratuity Payment Rules For Central Government Employees: Know All

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The Department of Pension and Pensioners' Welfare has issued Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021. These rules shall apply to the 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, and to whom the Central Civil Services (Implementation of National Pension System) Rules, 2021 apply, according to the notification issued on 23rd September 2021.

 

Provided that in the case of a Government servant who dies during service or is boarded out on account of disablement or retires on invalidation and who had exercised an option under rule 10 of the Central Civil Services Implementation of National Pension System Rules, 2021 for availing benefits under the Central Civil Services (Pension) Rules, 1972 or the Central Civil Services (Extraordinary Pension) Rules, 1939, payment of gratuity shall be made in accordance with the said rules. These rules may be called the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021.

New Gratuity Payment Rules For Central Government Employees: Know All

Regulation of claims to gratuity

Any claim to gratuity shall be regulated by the provisions of these rules in force at the time when a Government servant retired or is retired or is discharged or is allowed to resign from service or dies, as the case may be. The day on which a Government servant retired or is retired or is discharged or is allowed to resign from service, as the case may be, shall be treated as his last working day and the date of death of a Government servant shall also be treated as a working day.

 

Retirement gratuity or death gratuity

A Government servant, who has completed five years' qualifying service and who:

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

(ii) retires or is retired, in advance of the age of superannuation in accordance with rule 56 of the Fundamental Rules, 1922 or rule 12 of the Central Civil Services (Implementation of National Pension System) Rules, 2021; or

(iii) 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

(iv) on 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, shall, on his retirement, be granted retirement gratuity equal to one-fourth of his emoluments for each completed six monthly periods of qualifying service, subject to a maximum of 16½ times the emoluments.

Where a Government servant dies while in service, the death gratuity shall be payable to his family in the manner indicated in sub-rule (1) of rule 24 at the rates given in two times of emoluments for qualifying service of less than one year, six times of emoluments for qualifying service of 1 year or more but less than five years, twelve times of emoluments for qualifying service of 5 years or more but less than eleven years, twenty times of emoluments for qualifying service of eleven years or more but less than twenty years, and half of the emoluments for every completed six monthly periods of qualifying service subject to a maximum of thirty-three times of emoluments for qualifying service of twenty years or more.

Persons to whom gratuity is payable

The gratuity payable under rule 22 shall be paid to the person or persons on whom the right to receive the gratuity is conferred by means of a nomination under rule 23. If there is no such nomination or if the nomination made does not subsist, the gratuity shall be paid to one or more surviving members of the family as specified in clauses of sub-rule (5) of rule 22, to all such members in equal shares. If there are no such surviving members of the family as specified, but there are one or more members as specified in clauses of rule 22, to all such members in equal shares.

If a Government servant dies after retirement without receiving the gratuity admissible under sub-rule (1) of rule 22 the gratuity shall be disbursed to the family in the manner provided in sub-rule (1).

The right of a female member of the family, or that of a brother, of a Government servant who dies while in service or after retirement, to receive the share of gratuity shall not be affected if the female member marries or remarries, or the brother attains the age of eighteen years, after the death of the Government servant and before receiving her or his share of the gratuity.

Where gratuity is granted under rule 22 to a minor member of the family of the deceased Government servant, it shall be payable to the guardian on behalf of the minor.

Debarring a person from receiving gratuity

Where a person who in the event of death of a Government servant while in service is eligible to receive gratuity in terms of rule 24, is charged with the offense of murdering the Government servant or for abetting in the commission of such an offense, his claim to receive his share of gratuity shall remain suspended till the conclusion of the criminal proceedings instituted against him.

(2) Where on the conclusion of the criminal proceedings referred to in sub-rule (1), the person concerned, -
(a) is convicted for the murder or abetting in the murder of the Government servant, he shall be debarred from receiving his share of gratuity which shall be payable to other eligible members of the family, if any;
(b) is acquitted of the charge of murdering or abetting in the murder of the Government servant, his share of gratuity shall be payable to him.
(3) The provisions of sub-rule (1) and sub-rule (2) shall also apply to the undisbursed gratuity referred to in sub-rule (2) of rule 24.

Lapse of retirement gratuity or death gratuity

Where a Government servant dies while in service or after retirement without receiving the amount of gratuity and leaves behind no family, and, -
(a) has made no nomination; or
(b) the nomination made by him does not subsist, the amount of retirement gratuity or death gratuity payable in respect of such Government servant under rule 22 shall lapse to the Government. Provided that the amount of death gratuity or retirement gratuity shall be payable to the person in whose favour a Succession Certificate in respect of the gratuity in question has been granted by a Court of Law.

Superannuation gratuity

A superannuation gratuity shall be granted in accordance with rule 22 to a Government servant who is retired on his attaining the age of superannuation or if the service of the Government servant has been extended beyond superannuation, on expiry of such period of extension of service beyond the age of superannuation.

Invalid gratuity

An Invalid Gratuity shall be granted in accordance with rule 22 to a Government servant who retires from the service on account of any bodily or mental infirmity which permanently incapacitates him for the service in accordance with rule 16 of the Central Civil Services ( Implementation of National Pension System) Rules, 2021 and who had exercised option or in whose case the default option under rule 10 of that rules, is for availing benefits under National Pension System.

Provided that where a Government servant, who had exercised option or in whose case the default option under rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021 is for availing benefits under the Central Civil Services (Pension) Rules, 1972 or the Central Civil Services (Extraordinary Pension) Rules, 1939 and in whose case the provision of section 20 of the Rights of Persons with Disabilities Act, 2016 (49 of 2016) are not applicable, retires on account of any bodily or mental infirmity which permanently incapacitates him for the service, further action will be taken by the Head of Office for disbursement of benefits in accordance with the Central Civil Services (Pension) Rules, 1972 or the Central Civil Services (Extraordinary Pension) Rules,1939 as the case may be.

Retiring gratuity

A Government servant who retires or is retired, in advance of the age of superannuation in accordance with rule 56 of the Fundamental Rules, 1922 or rule 12 of the Central Civil Services ( Implementation of National Pension System) Rules, 2021 on being declared surplus to the establishment in which he was serving, opts for Special Voluntary Retirement Scheme for surplus employees notified by the Department of Personnel and Training vide Office Memorandum No. 25013/6/2001-Estt. (A), dated the 28th February, 2002 as amended from time to time, shall be entitled to gratuity admissible under rule 22.

Gratuity on compulsory retirement

A Government servant compulsorily retired from service as a penalty may be granted, by the authority competent to impose such penalty, gratuity at a rate not less than two-thirds of gratuity admissible to him on the date of his compulsory retirement. Whenever in the case of a Government servant the President passes an order (whether original, appellate or in exercise of power of review) awarding a gratuity less than the full gratuity admissible under these rules, the Union Public Service Commission shall be consulted before such order is passed.

Payment of gratuity in the case of missing Government servant

Where a Government servant is missing, the family shall lodge a complaint with the concerned police station and obtain a report from the police, that the Government servant has not been traced despite all efforts made by the police and the report may be the First Information Report or any other report such as Daily Diary or General Diary Entry. The family after six months of lodging a police complaint may apply in Form 4 for the grant of retirement gratuity to the Head of Office of the organization where the Government servant had last served. The retirement gratuity may be sanctioned by the concerned Ministry or Department after observing the following formalities, namely:-

  • ensure that the complaint lodged with the police and nontraceable report given by the police with regard to Government servant is correct.
  • an Indemnity bond in Proforma- B shall be taken from the nominee or dependents of the Government servant that the retirement gratuity shall be adjusted against the payment due to the Government servant in case he appears on the scene and makes any claim.

The Head of Office shall process the case in Form 5 for grant of retirement gratuity. The retirement gratuity shall be paid to the family within three months of the date of application and in case of any delay, the interest shall be paid at the applicable Public Provident Fund rates and responsibility for delay shall be fixed in accordance with rule 44. The difference between the death gratuity and retirement gratuity shall be payable after the death of the employee is conclusively established or on the expiry of the period of seven years from the date of the police report.

The Head of Office shall assess all the Government dues outstanding against the Government servant and effect their recovery in accordance with rule 45 before sanctioning the payment of gratuity.

Preparation of papers for payment of gratuity

Every Head of Office shall undertake the work of preparation of papers for grant of gratuity in Form 6 one year before the date on which a Government servant is due to retire on superannuation, or on the date on which he proceeds on leave preparatory to retirement, whichever is earlier.

Source: doptcirculars.nic.in

Read more about: gratuity
Story first published: Monday, September 27, 2021, 16:03 [IST]
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