Rules, Rights & Rites -26 Gratuity Eligibility on Resignation (NPS Rules, 2021)
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Gratuity Eligibility on Resignation (NPS Rules, 2021)
• The Department of Pension & Pensioners' Welfare (DoPPW) issued the Office Memorandum to clarify the eligibility for gratuity payment under the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021 upon resignation.
• Retirement Gratuity Eligibility (Rule 22):
• A government servant must have completed five years' qualifying service to be eligible for retirement gratuity.
• Gratuity is applicable only on retirement under specific conditions, which include:
• Retiring on attaining the age of superannuation or on invalidation.
• Retiring in advance of the age of superannuation (in accordance with FR 56 or Rule 12 of the CCS (Implementation of NPS) Rules, 2021).
• Opting for Special Voluntary Retirement Scheme after being declared surplus.
• Being permitted to be absorbed in a service/post under a Corporation, Company, or Body controlled or financed by the Central/State Government.
• Forfeiture of Service on Resignation (Rule 17): Resignation generally leads to the forfeiture of past service unless the appointing authority allows it to be withdrawn in the public interest.
• Exceptions (Resignation does NOT forfeit past service):
• Technical Resignation (Rule 17(2)): When the resignation is submitted to take up, with proper permission, another appointment (temporary or permanent) under the Government where service qualifies.
• Absorption (Rule 17(5) and Rule 32): When the resignation is for the purpose of taking up absorption in a Corporation, Company, or Body (as detailed in Rule 32). In this case, the government servant is deemed to have retired and is eligible for retirement gratuity.
• Conclusion on Gratuity and Resignation:
• Retirement gratuity is applicable only on retirement as detailed in Rule 22.
• Resignation forfeits past services, and no gratuity is payable in such cases, except for the instances of technical resignation or deemed retirement/absorption mentioned above.
(DOP & PW OM No. 2/8/2025-P & PW(F).11164 dated 24.10.2025)
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