Gratuity Rules: If you are a government employee and are benefiting from the National Pension System (NPS), this news could be very important for you. The Central Government’s Department of Pension and Pensioners’ Welfare has issued a new Office Memorandum (OM) regarding gratuity for employees covered under the National Pension System (NPS). This OM clarifies the circumstances under which a limit will apply to gratuity and in which cases it will not. This makes the rules clearer and more transparent for employees and pensioners.
Gratuity Limit According to New Guidelines
đź“Ś Also Read: Government Scheme - Government is Giving Rs 6000 Every Month, Know Who Can Take Benefit
According to the new guidelines, Rule 4A of the CCS Amendment Rules 2025 stipulates that if an employee has previously served in the central government and a PSU or an autonomous body and has received separate gratuity from both, a limit will apply to the total gratuity. This means that the total gratuity received by the employee from both institutions will not exceed the limit determined based on their total service period and last drawn salary.
Read Here: 7000 mAh Battery Phone—Realme P4x 5G for Less Than Rs 15000 on Amazon
đź“Ś Also Read: PM Kisan Update - Farmers Face Increased Difficulties - Only These Farmers Will Now Receive Scheme Benefits
Re-employment in Government Service
The OM also clarifies that if an employee rejoins government service after receiving retirement or compassionate gratuity, they will not be entitled to separate gratuity for the new position. That is, there will be no additional payment for the new appointment after the amount of gratuity already received.
📌 Also Read: Transit Visa Rule Changed — What You Must Know Before Your Next Trip Abroad
Rules for Employees Joining the Central Government
Employees who join the central government from a PSU or autonomous body with proper permission will receive gratuity from the central government, and the gratuity received from the PSU/Autonomous Body will also remain. However, the total gratuity received from both places cannot exceed the limit determined based on the entire service period and the last drawn salary.
đź“Ś Also Read: Bank Holiday List 2026 - Jan to Dec Full Month-Wise Calendar for All States, Complete List with Dates
State and Central Government Service
If an employee has served in both the state government and the central government and has received separate gratuity payments from both, the total gratuity cannot exceed the limit applicable to continuous service in the central government alone.
📌 Also Read: EPFO’s New Facility, Govt Allows PF Withdrawal Through BHIM App
Relief for Civil Servants
đź“Ś Also Read: Start These 5 Small Business in 2026 for Great Earnings With Low Investment
The most significant relief is for employees who served in the military before joining the civil service. The government has clarified that receiving gratuity for military service will not result in any reduction in the gratuity received for civil service. This ensures that employees with prior military service will not be disadvantaged in terms of gratuity in the civil service.
Rules Made Easier and More Transparent
đź“Ś Also Read: How to Build a Rs 10 Lakh Fund With a Rs 5000 SIP, Understand the calculation
This new Office Memorandum (OM) makes the rules for NPS employees and pensioners simpler, clearer, and more transparent. The rules are now particularly clear for employees transferring from PSUs to the central government and those joining the civil service after military service, eliminating previous ambiguities.