Clarification on Gratuity Eligibility on Resignation
Purpose of the Clarification
The Department of Pension & Pensioners’ Welfare (DoPPW) issued an Office Memorandum dated 24 October 2025 clarifying the eligibility for payment of gratuity when a Central Government employee under the National Pension System (NPS) resigns from service.
When is Gratuity Payable?
Under Rule 22 of the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021, gratuity is payable only upon retirement—not upon resignation. An employee who has completed at least five years of qualifying service becomes eligible for retirement gratuity in the following situations:
- Retirement on attaining the age of superannuation or on invalidation;
- Voluntary or premature retirement before superannuation as per applicable rules;
- Being declared surplus and opting for the Special Voluntary Retirement Scheme (SVRS);
- Absorption into a corporation, company or government-financed body where service qualifies.
In these cases, retirement gratuity is computed as ¼ of emoluments for each completed six-monthly period of qualifying service, subject to a maximum of 16½ times the emoluments.
Resignation Forfeits Gratuity
As per Rule 17, resignation from service (unless withdrawn in public interest) entails forfeiture of past service. Therefore, a plain resignation makes the employee ineligible for gratuity, regardless of length of service.
• The resignation is a technical resignation submitted with permission to take another Government appointment where service qualifies; or
• The employee is absorbed into a corporation, company, or body wholly/substantially owned or controlled by Government. In such cases, the employee is deemed to have retired and is eligible for retirement gratuity based on qualifying service and emoluments on the date of absorption.
Key Takeaway
If you resign to leave government service entirely, your past service is forfeited and gratuity is not payable. If you resign to join another qualifying government post or are absorbed into a government-controlled organization, your service is protected and you remain eligible for retirement gratuity.
Official Reference
Office Memorandum No. 2/8/2025-P&PW(F)/11164
Department of Pension & Pensioners’ Welfare — Ministry of Personnel, Public Grievances & Pensions — Government of India
Dated 24 October 2025
Are you a Central Government Employee?
Don’t stay in the dark! Vital updates on Service Rules, Pension policies, and your career are happening right now.
Add as Preferred Source on Google
Follow us to ensure our latest exclusive reports appear first in your Google Search and Discover feed.
Comments
Post a Comment