NPS Gratuity Rules: The Department of Pension and Pensioners’ Welfare (DoPPW) has issued an important clarification regarding gratuity under the National Pension System (NPS). This office memorandum was issued on December 26, 2025.  Its purpose is to clarify whether an employee who has previously received gratuity for military service and subsequently rejoins civil service will be entitled to receive gratuity again. According to the report, the DoPPW has clarified the circumstances under which a re-employed government employee will not receive separate gratuity.

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Which Employees Will Not Receive Separate Gratuity?

The memorandum states that if a government employee has retired after receiving gratuity upon superannuation, retirement, or compulsory retirement, or has received compassionate gratuity upon removal from service, and is subsequently re-employed in government service, they will not be entitled to a separate gratuity for the second period of service.

First Condition

If a person has previously worked in an autonomous body or Public Sector Undertaking (PSU) and is subsequently appointed to government service with the permission of that body, they will be eligible for gratuity for the service rendered in the government. This gratuity will be in addition to the amount they have already received for their service in the autonomous body or PSU.

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Second Condition

However, the total amount of gratuity received from both the autonomous body or PSU and the government service should not exceed the maximum limit prescribed by the government, taking into account the entire period of service.