Gratuity: Who will receive a gratuity of up to Rs 25 lakh? The central govt has clarified

Gratuity: Big news for pensioners. The central government recently issued a clarification regarding gratuity payments. The government has specified who will receive gratuity up to Rs 25 lakh. Let’s find out…

Who will get gratuity up to Rs 25 lakh?

According to a report, the Department of Pension and Pensioners’ Welfare (DoPPW) has clarified through an order that only those Central Government public servants who are covered under the Central Civil Services (Pension) Rules, 2021 or the Central Civil Services (Payment of Gratuity under the National Pension System) Rules, 2021 will get gratuity up to a maximum of Rs 25 lakh.

This increased gratuity limit will not apply to all institutions or employees – such as employees of public sector undertakings (PSUs), banks, port trusts, Reserve Bank of India (RBI), autonomous institutions, universities, state governments or employees associated with societies.

What does the order say?

The Department of Personnel and Public Grievances order said it “continues to receive references/RTI applications etc. seeking clarification as to whether the above-mentioned OM/CCS (Pension) Rules governing payment of gratuity apply to societies, banks, port trusts, RBI, PSUs, autonomous bodies, universities and state governments etc. and if not, the rules under which these organisations are governed”.

The order said that the Department of Personnel and Public Grievances is the nodal department for formulation of policies relating to pension and other retirement benefits of Central Government civil servants covered under the Central Civil Services (Pension) Rules, 2021 and the Central Civil Services (Payment of Gratuity under the National Pension System) Rules, 2021.

The department clarified that “these rules do not apply to societies, banks, port trusts, RBI, PSUs, autonomous bodies, universities and state governments, etc.” It further stated that “any queries on this subject, including as to what rules govern such organisations, should be addressed to the concerned organisation/concerned administrative ministry/department”.