Regulation of Retirement Gratuity and Death Gratuity: CHAPTER V-CCS (Payment of Gratuity under NPS) Rules, 2021

CHAPTER V

Regulation of Retirement Gratuity and Death Gratuity

22. Retirement gratuity or death gratuity

22. Retirement gratuity or death gratuity. – (1) A Government servant, who has completed five years’ qualifying service and who, –

(i) retires on attaining the age of superannuation, or on invalidation, or

(ii) retires or is retired, in advance of the age of superannuation in accordance with rule 56 of the Fundamental Rules, 1922 or rule 12 of the Central Civil Services (Implementation of National Pension System) Rules, 2021; or

(iii) on being declared surplus to the establishment in which he was serving, opts for Special Voluntary Retirement Scheme relating to voluntary retirement of surplus employees; or

(iv) on has been permitted to be absorbed in a service or post in or under a Corporation or Company wholly or substantially owned or controlled by the Central Government or a State Government or in or under a body controlled or financed by the Central Government or a State Government, shall, on his retirement, be granted retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service, subject to a maximum of 16½ times the emoluments.

(2) Where a Government servant dies while in service, the death gratuity shall be payable to his family in the manner indicated in sub-rule (1) of rule 24 at the rates given in the following Table, namely : –

TABLE

Sl. No.	Length of qualifying service	Rate of death gratuity
(i)	Less than one year	Two times of emoluments.
(ii)	One year or more but less than five years	Six times of emoluments.
(iii)	Five years or more but less than eleven years	Twelve times of emoluments.
(iv)	Eleven years or more but less than twenty years	Twenty times of emoluments.
(v)	Twenty years or more	Half of emoluments for every completed six- monthly period of qualifying service subject to a maximum of thirty three times of emoluments:

Provided that the amount of retirement gratuity or death gratuity payable under this rule shall in no case exceed twenty lakh rupees:

Provided further that where the amount of retirement or death gratuity as finally calculated contains a fraction of a rupee, it shall be rounded off to the next higher rupee.

(3) The emoluments for the purpose of gratuity admissible under this rule, shall be reckoned in accordance with rule 6:

Provided that if the emoluments of a Government servant have been reduced during the last ten months of his service otherwise than as a penalty, average emoluments as referred to in rule 7 shall be treated as emoluments:

Provided further that the dearness allowance admissible on the date of retirement or death, as the case may be, shall also be treated as emoluments for the purpose of this rule.

(4) Where a Government servant, who has become eligible for retirement gratuity dies within five years from the date of his retirement from service including compulsory retirement as a penalty and the sums actually received by him at the time of death on account of such annuity under National Pension System, if any, together with the retirement gratuity admissible under sub –rule (1) are less that the amount equal to twelve times of his emoluments, a residuary gratuity equal to the deficiency may be granted to his family in the manner indicated in sub-rule (1) of rule 24.

(5) For the purposes of this rule and rules 23, 24, 25 and 26, ‘family’, in relation to a Government servant, means, –

(i) wife or wives including judicially separated wife or wives in the case of a male Government servant;

(ii) husband, including judicially separated husband in the case of a female Government servant;

(iii) sons including stepsons and adopted sons;

(iv) unmarried daughters including stepdaughters and adopted daughters;

(v) widowed or divorced daughters including stepdaughters and adopted daughters;

(vi) father, including adoptive parents in the case of individuals whose personal law permits adoption;

(vii) mother, including adoptive parents in the case of individuals whose personal law permits adoption;

(viii) brothers below the age of eighteen years including stepbrothers;

(ix) unmarried sisters and widowed sisters including stepsisters;

(x) married daughters, and

(xi) children of a pre-deceased son.

Explanation. – (1) In calculating the length of qualifying service, fraction of a year equal to three months and above shall be treated as a completed one half-year and reckoned as qualifying service. (2) Death gratuity shall also be admissible in the case of a Government servant who commits suicide.

23. Nominations

24. Persons to whom gratuity is payable

24. Persons to whom gratuity is payable.- (1) (a) The gratuity payable under rule 22 shall be paid to the person or persons on whom the right to receive the gratuity is conferred by means of a nomination under rule 23;

(b) If there is no such nomination or if the nomination made does not subsist, the gratuity shall be paid in the following manner, namely : –

(A) if there are one or more surviving members of the family as specified in clauses (i), (ii), (iii), (iv) and (v) of sub-rule (5) of rule 22, to all such members in equal shares;

(B) if there are no such surviving members of the family as specified in sub-clause (A), but there are one or more members as specified in clauses (vi), (vii), (viii), (ix), (x) and (xi) of sub-rule (5) of rule 22, to all such members in equal shares.

(2) If a Government servant dies after retirement without receiving the gratuity admissible under sub-rule (1) of rule 22 the gratuity shall be disbursed to the family in the manner provided in sub-rule (1).

(3) The right of a female member of the family, or that of a brother, of a Government servant who dies while in service or after retirement, to receive the share of gratuity shall not be affected if the female member marries or re-marries, or the brother attains the age of eighteen years, after the death of the Government servant and before receiving her or his share of the gratuity.

(4) Where gratuity is granted under rule 22 to a minor member of the family of the deceased Government servant, it shall be payable to the guardian on behalf of the minor.

Explanation.- (1) Payment of the minor’s share of gratuity shall be made to the natural guardian of the minor, if any and in the absence of a natural guardian, the payment of minor’s share of gratuity shall be made to the person who furnishes a certificate of guardianship.

(2) In the absence of a natural guardian, the payment of twenty per cent. of minor’s share of gratuity may be made to the guardian without the production of a guardianship certificate but on production of an indemnity bond in Proforma A and the balance amount of minor’s share of gratuity may be paid to the guardian on production of the certificate of guardianship.

(3) The share of the gratuity payable to a member of the family who has died or become disqualified before receiving actual payment, shall be distributed equally among the remaining members of the family in accordance with clause (b) of sub-rule (1) of rule 24.

(4) Disbursing authorities shall ascertain, before making actual payment of a death or retirement gratuity whether all the member of the family in whose favour the sanction was issued have continued to be qualified. If not, and also if any of them is dead, the fact shall be reported immediately to the sanctioning authority for the issue of a revised sanction in favour of the remaining members of the family.

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Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021 – Notification G.S.R. 658 (E)

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