OM on Limitation on Amount of Gratuity - Government of India

🏛️ GOVERNMENT OF INDIA

Office Memorandum

Department of Pension and Pensioners’ Welfare

Ministry of Personnel, Public Grievances and Pensions

🏠 Ministry / Gratuity Clarification / December 2025

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OM Number

No. 28/03/2025-P&PW(B)/10865

Date of Issue

26th December, 2025

Department

Pension & Pensioners’ Welfare

Location

3rd Floor, Lok Nayak Bhavan, Khan Market, New Delhi

Subject

Clarification on limitation on amount of gratuity under the National Pension System (NPS) on drawing separate gratuity for Military service

1 Rule 4A - Central Civil Services (Payment of Gratuity under NPS)

The undersigned is directed to say that Rule 4A of the Central Civil Services (Payment of Gratuity under NPS) Amendment Rules, 2025 provides for limitation of maximum admissible gratuity on availing separate gratuity for the Central Government service and for the service in PSUs/Autonomous bodies.

2 Conditions for Re-employment and Gratuity

Main Provision: A Government servant who, having retired on superannuation gratuity, retiring gratuity, compulsory retirement gratuity, or compassionate gratuity, is subsequently re-employed, shall not be entitled to a separate gratuity for the period of re-employment.

First Proviso: A Government servant previously appointed in an autonomous body or public sector undertaking and subsequently appointed in Government service (with proper permission) shall be eligible for gratuity for Government service in addition to gratuity from PSU/Autonomous body.

Second Proviso: The total amount of gratuity shall not exceed the amount admissible considering the entire service rendered and the emoluments on retirement from Government.

3 Counting of Past Service & State Government Service

The Department of Pension and Pensioners’ Welfare vide OM No. 7/5/2012-P&PW(B) dated 12.02.2020 issued instructions on counting of past service for grant of gratuity to Central Government employees under NPS.

Condition: If employees avail separate gratuity for State Government service and Central Government service, the total gratuity admissible shall not exceed the amount that would have been admissible had the Government servant continued in Government service and retired on the same pay drawn on retirement from the later service.

4 Clarification: Military Service to Civil Service

References have been received seeking clarification regarding limitation on grant of separate gratuity for civil service in respect to Government servants re-employed in civil service after rendering military service and having drawn separate gratuity for military service.

KEY CLARIFICATION: Similar to the provisions under CCS (Pension) Rules, 2021, the gratuity for service rendered after re-employment in civil service under CCS(Payment of Gratuity under NPS) Rules, 2021, shall NOT be subject to any limitation with reference to the gratuity drawn for military service.

✓ This matter has been considered in consultation with the Department of Expenditure.

5 Consultation & Approval

This Office Memorandum is issued in consultation with:

• Ministry of Finance, Department of Expenditure (Note No. 1(8)/EV/2025 dated 11.11.2025)

6 Indian Audit & Accounts Department

For persons serving in the Indian Audit and Accounts Department, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

7 Implementation Instructions

All Ministries/Departments/Organisations are requested to bring the above provisions to the notice of personnel dealing with pensionary benefits in their respective offices for strict implementation.

S. Chakrabarti
Under Secretary to the Government of India

To: All Ministries/Departments/Organisations (As per standard list)

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