Gratuity Update– If you are a central government employee yourself or there is a central government employee in your family, then this news is useful for you. A big announcement was made by the government for lakhs of central employees. Union Minister Jitendra Singh announced that employees covered under the Unified Pension Scheme (UPS) will now be entitled to retirement and death gratuity under the Old Pension Scheme (OPS). With this decision, the long-standing demand of the employees has been fulfilled.

Gratuity benefit up to Rs 25 lakh

Minister of State for Personnel Jitendra Singh said that the new provision implemented by the government reflects the government’s commitment to provide social security to the employees covered under NPS. Singh said that the central employees included in UPS will now be entitled to retirement and death gratuity under the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021. After this, the employees joining UPS will be able to get the benefit of gratuity up to Rs 25 lakh.

Employees will get benefit in these two conditions

In the order issued by the Department of Pension and Pensioners (DoPPW), it was said that under UPS, employees will get the option to avail OPS benefits if they leave the job due to death or disability during the job. Secretary of DoPPW V. Srinivas said, ‘This order removes the doubts of the employees and is progressive.’ Manjit Singh Patel, Chairman of All India NPS Employees Federation, called this decision historic.

He said that the inclusion of death cum retirement gratuity in UPS will remove the misunderstandings of the employees. Patel said, ‘It is a great justice for the employees to get the benefit of OPS in case of death or physical disability during the job. After the implementation of this rule, many employees will select UPS.’ DOPPW had made rules related to Central Civil Services in 2021. Under these, Rule 10 stated that every central employee included in NPS has the right to choose the benefit of NPS or OPS on leaving the job due to death or disability during the job.

The order said that employees choosing UPS will be able to avail the benefits under Central Civil Services (Pension) Rules, 2021 or Central Civil Services (Extraordinary Pension) Rules 2023. This decision of the government is expected to provide great relief to the central employees. The inclusion of OPS benefits in UPS will increase the confidence of the employees. This step taken by the government takes care of the social security of the employees as well as their future.