New Retirement Gratuity Rule: The Central Government has recently notified the Central Civil Services (Payment of Gratuity under National Payment System) Rules, 2021. This is the law related to your gratuity. This rule of payment of gratuity will be applicable to the employees of the Central Government. It will also include civilian government employees appointed to the posts of Defense Services and Civil Services for the Centre. For those who have been appointed on or after the first day of January 2004, this rule will be applicable.
According to the gazette notification, any claims made for gratuity will be applicable as per the new rules. For this it will be seen whether a Government servant is retiring, or has been retired, whether he has been discharged, whether he has been allowed to retire from service or has died. Gratuity will be claimed as the case may be with the employee.
The date on which a Government servant retires or is due to retire or is relieved or approved to resign shall be deemed to be the last working day of the employee and gratuity shall be calculated accordingly. . The calculation of gratuity on the day of the death of a government employee will be done considering that day as a working day.
Eligibility for retirement
- According to the notification of the Central Government, retirement gratuity will be given to the government employee only after he completes 5 years of his service.
- The employee should have retired at the age of superannuation or invalidity.
- The employee has retired or is about to retire before the age of superannuation
- Surplus can be declared in the job in which the employee was employed and in case of surplus employee, he takes special voluntary retirement
- If permitted to hold service or post in any company or corporation of the Central Government or State Government.
- If the post or service has been received in any institution of the Central or State Government, then such Government servant is entitled to gratuity.
Payment calculation
In the above case, the employee will be given the basis of his total remuneration. Gratuity will be one fourth of the total remuneration for the 6 months completed in the job. It can be up to 161/2 times the maximum remuneration. Here the total remuneration means how much basic payment was being received by the government employee before retirement or on the day of death. If the employee was posted on the post of doctor, then non-practicing allowance will also be added to his basic pay.
