New gratuity rules for central government employees under NPS

Clarification regarding retirement gratuity on mobility from one organisation to another – New gratuity rules for central government employees under NPS

NEW DELHI : The government has issued a clarification related to retirement gratuity on mobility from one organisation to another. In a recent circular, the department of pension and pensioners’ welfare said it has been decided that there shall be no sharing of gratuity liability between two departments of central government and between the central and state governments.

Here are the new gratuity rules explained in 5 points:

1) On mobility from a central govt service to another central government service, the service rendered in the previous department in the central shall be counted for the purpose of grant of gratuity. There shall be no sharing of gratuity liability between the two departments of central govt.

2) On mobility from a central govt service to a state govt service having NPS with provision for retirement/death gratuity for its employees similar to those in central govt, the service rendered in the central govt shall apply on mobility of an NPS employee of the state govt to central govt dept. There shall be no sharing of gratuity liability between the central and state governments.

3) On mobility from central govt service to a central or state autonomous body service having NPS with provision of retirement, death gratuity for its employees similar to that in the central government, the service rendered in the central govt would be counted for grant of gratuity. The amount of retirement gratuity would be paid by the government to the central/state autonomous body for the service rendered in the government.

4) On mobility from central govt service to a central or state autonomous body or to a state govt where the provision for grant of gratuity similar to that in central govt does not exist or to a PSU, the govt employee shall be granted retirement gratuity as per rule for the service rendered in the central government. This is subject to the condition that the total gratuity admissible in respect of the service rendered under the central govt shall not exceed the amount that would have been admissible had the govt servant continued in govt service and retired on the same pay which he or she drew on retirement.

5) The new provisions are applicable to government employees covered under NPS who resign to take up another appointment in the central or state government, government bodies or PSUs.

Source: livemint