Central Civil Services (Payment of Gratuity under NPS) Rules, 2021

Complete Study Notes | Ministry of Personnel, Public Grievances and Pensions

Sub-rule (1) — Short Title

• 📜These rules may be called the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021

Sub-rule (2) — Commencement

• 📅They shall come into force on the date of their publication in the Official Gazette
• ✅Effective Date: 23rd September, 2021

Save as otherwise provided in these rules, these rules shall apply to:

• 👥The Government servants including civilian Government servants in the Defence Services
• 📋Appointed substantively to civil services and posts in connection with the affairs of the Union
• 📅On or after the 1st day of January 2004
• ⚖️To whom the Central Civil Services (Implementation of National Pension System) Rules, 2021 apply

In these rules, unless the context otherwise requires:

Sub-rule (1) — Specific Definitions

(a) 'Accounts Officer'

• 👤An officer, whatever his official designation, of a Ministry or Department functioning under the scheme of departmentalisation of accounts
• 💼Who, inter-alia is responsible for receipts, payments, Internal Audit and accounting functions of an office or Department or Ministry
• 📋Includes officers subordinate to the Accountant General who is entrusted with maintaining the accounts of the Central Government or Union territory

(b) 'Allottee'

• 🏠A Government servant to whom Government accommodation has been allotted on payment of license fee or otherwise

(h) 'Gratuity'

(i) 'Minor'

• 👶A person who has not completed the age of eighteen years

(j) 'Qualifying Service'

(k) 'Service Book'

• 📚Includes service roll, if any

Sub-rule (2) — Words and Expressions from Other Rules

Sub-rule (1) — Governing Rules

• ⚖️Any claim to gratuity shall be regulated by the provisions of these rules in force at the time when a Government servant:

• 🎓Retires or is retired, OR
• 📤Is discharged, OR
• ✍️Is allowed to resign from service, OR
• 💀Dies

Sub-rule (2) — Last Working Day

• 📅The day on which a Government servant retires or is retired or is discharged or is allowed to resign from service shall be treated as his last working day
• 💀The date of death of a Government servant shall also be treated as a working day

Sub-rule (1) — Presidential Powers

Sub-rule (2) — Departmental Proceedings After Retirement

(a) Continuation of Proceedings:

• 📋The departmental proceedings referred to in sub-rule (1), shall, after the retirement of the Government servant, be deemed to be proceedings under this rule
• ⚖️Shall be continued and concluded by the authority by which they were commenced
• 📝In the same manner as if the Government servant had continued in service

(b) Suspension of Gratuity Payment:

Sub-rule (3) — Revisional Powers

• 🔄The President may at any time, either on his own motion or otherwise, call for the records of any inquiry
• ⚖️Revise any order made under these rules and may:

• ✅Confirm the order
• 🔄Modify the order
• ❌Set aside the order
• 📤Remit the case to an authority directing such authority to make further enquiry
• ⚖️Pass such other order as he may deem fit

Sub-rule (4) — Review Powers

• 🔍The President may at any time, either on his own motion or otherwise, review any order passed under these rules where:

• ⚖️Extenuating or special circumstances exist to warrant such review, OR
• 📄New material or evidence which could not be produced or was not available at the time of passing of the order and which has the effect of changing the nature of the case, has come or has been brought to his notice

Sub-rule (5) — When Proceedings Deemed to be Instituted

(a) Departmental Proceedings:

• 📅Deemed to be instituted on the date on which the statement of charges is issued to the Government servant or pensioner
• ⏰OR if the Government servant has been placed under suspension from an earlier date, on such date

(b) Judicial Proceedings:

• ⚖️(i) Criminal proceedings: On the date on which the complaint or report of a police officer, of which the Magistrate takes cognizance, is made
• 📋(ii) Civil proceedings: On the date the plaint is presented in the court

Sub-rule (1) — What Constitutes Emoluments

The expression 'emoluments' for the purpose of determining the amount of gratuity payable under these rules shall include:

• 💰The basic pay as defined in rule 9(21)(a)(i) of the Fundamental Rules, 1922
• 📅Which a Government servant was receiving immediately before his retirement or on the date of his death
• 💊Shall also include non-practicing allowance granted to medical officer in lieu of private practice

Sub-rule (2) — Absence from Duty or Suspension

Where a Government servant immediately before his retirement or death while in service had been:

• 🏖️Absent from duty, OR
• 📋Was on leave for which leave salary is payable, OR
• ⏸️Having been suspended had been reinstated without forfeiture of service

The emoluments which he would have drawn had he not been absent from duty or suspended shall be the emoluments for the purposes of this rule.

Sub-rule (3) — Leave After Holding Higher Appointment

Where a Government servant immediately before his retirement or death while in service had:

• 📤Proceeded on leave for which leave salary is payable
• 👔After having held a higher appointment whether in an officiating or temporary capacity

The benefit of emoluments drawn in such higher appointment shall be given only if:

• ✅It is certified that the Government servant would have continued to hold the higher appointment but for his proceeding on leave

Sub-rule (4) — Extraordinary Leave or Non-Counting Suspension

Where a Government servant immediately before his retirement or death while in service had been:

• 🚫Absent from duty on extraordinary leave, OR
• ⏸️Had been under suspension, the period whereof does not count as service

The emoluments which he drew immediately before proceeding on such leave or being placed under suspension shall be the emoluments for the purposes of this rule.

Sub-rule (5) — Increment During Earned Leave

Sub-rule (6) — Deputation to Central Government/Armed Forces

• 🔄Pay drawn by a Government servant while on deputation to:

• 🏛️Another Central Government Department, OR
• 🎖️The Armed Forces of India

Shall be treated as emoluments.

Sub-rule (7) — Foreign Service

• 🌍Pay drawn by a Government servant while on foreign service shall NOT be treated as emoluments
• 💰The pay which he would have drawn under the Government had he not been on foreign service shall alone be treated as emoluments

Sub-rule (8) — Re-employment of Pensioner

Where a pensioner who is re-employed in Government service and whose pay on re-employment has been reduced by an amount not exceeding his monthly pension:

• 💵The element of monthly pension by which his pay is reduced shall be treated as emoluments

Sub-rule (1) — Calculation Period

Sub-rule (2) — Absence from Duty or Suspension

Where during the last ten months of his service, a Government servant had been:

• 🏖️Absent from duty on leave for which leave salary is payable, OR
• ⏸️Having been suspended had been reinstated without forfeiture of service

The emoluments which he would have drawn had he not been absent from duty or suspended shall be taken into account for determining the average emoluments.

Sub-rule (3) — Extraordinary Leave or Non-Counting Suspension

Where during the last ten months of his service, a Government servant had been:

• 🚫Absent from duty on extraordinary leave, OR
• ⏸️Had been under suspension the period whereof does not count as service

The aforesaid period of leave or suspension shall be:

• ❌Disregarded in the calculation of the average emoluments
• ➕Equal period before the ten months shall be included

Sub-rule (4) — Increment During Earned Leave

Subject to the provisions of these rules, qualifying service of a Government servant shall commence from:

• 📅The date he takes charge of the post to which he is first appointed
• 👔Either substantively OR in an officiating or temporary capacity

Sub-rule (1) — Basic Qualifying Conditions

• ⚖️The service of a Government servant shall not qualify, unless:

• 📋His duties and pay are regulated by the Government, OR
• 📜Under conditions determined by the Government

Sub-rule (2) — Transfer from State Government

In the case of Government servant belonging to a State Government who is permanently transferred to a service or post to which these rules apply:

• 🔄The continuous service rendered under the State Government in an officiating or temporary capacity, if any, followed without interruption by substantive appointment, OR
• 📋The continuous service rendered under that Government in an officiating or temporary capacity

Shall qualify.

• ✅Service on probation against a post if followed by confirmation in the same or another post shall qualify

• 🚫Service as an apprentice shall not qualify

The following leave shall count as qualifying service:

• 🏖️All leave during service for which leave salary is payable
• 🏥All extraordinary leave granted on medical certificate

Sub-rule (1) — Training for Group 'A' or Group 'B' Posts

• ⚖️The Government may, by order, decide whether the time spent by a Government servant under training immediately before appointment to a Group 'A' or Group 'B' post under that Government shall count as qualifying service

Sub-rule (2) — Training for Group 'C' Posts

• ✅Time spent by a Government servant under training immediately before appointment to a Group 'C' post under the Government shall count as qualifying service

Sub-rule (3) — Departmental Training for Group 'C' Employees

Time passed by a Government servant under suspension pending inquiry into conduct shall count as qualifying service where:

• ✅On conclusion of such inquiry, he has been fully exonerated, OR
• ⚖️A minor penalty is imposed on the Government servant, OR
• 🚫The suspension is held to be wholly unjustified

Sub-rule (1) — Reinstatement After Appeal or Review

• ✅A Government servant who is dismissed, removed or compulsorily retired from service, but is reinstated on appeal or review, is entitled to count his past service as qualifying service

Sub-rule (2) — Period of Interruption

• ⏰The period of interruption in service between the date of dismissal/removal/compulsory retirement and the date of reinstatement, AND
• ⏸️The period of suspension, if any

Shall not count as qualifying service unless:

• ✅Regularised as duty or leave by a specific order of the authority which passed the order of reinstatement

Sub-rule (1) — General Rule on Resignation

• 🚫Resignation from a service or a post entails forfeiture of past service

Sub-rule (2) — Resignation for Another Government Post

• ✅A resignation shall not entail forfeiture of past service if:

• 📋It has been submitted to take up, with proper permission, another appointment (whether temporary or permanent) under the Government where service qualifies

Sub-rule (3) — Interruption Due to Transfer to Different Station

Interruption in service in a case falling under sub-rule (2), due to the two appointments being at different stations:

• ⏰Not exceeding the joining time permissible under the rules of transfer
• 🏖️Shall be covered by grant of leave of any kind due to the Government servant on the date of relief, OR
• ✅By formal condonation by present organisation to the extent to which the period is not covered by leave due to him

Sub-rule (4) — Withdrawal of Resignation with Condonation

• 📜Where an order is passed by the appointing authority under CCS (Implementation of NPS) Rules, 2021, allowing a person to withdraw his resignation and resume duty
• ✅The order shall be deemed to include the condonation of interruption in service
• 🚫But the period of interruption shall not count as qualifying service

Sub-rule (5) — Resignation for Pension Purposes

• 📋A resignation submitted for the purpose of rule 32 shall not entail forfeiture of past service under the Government

Sub-rule (1) — General Rule and Exceptions

An interruption in the service of a Government servant entails forfeiture of his past service, except in the following cases:

• 🏖️(a) Authorised leave of absence
• ⏰(b) Unauthorised absence in continuation of authorised leave of absence so long as the post of absentee is not filled substantively
• ⏸️(c) Suspension, where it is immediately followed by reinstatement (whether in the same or a different post), OR where the Government servant dies or is permitted to retire or is retired on attaining the age of compulsory retirement while under suspension
• 🔄(d) Transfer to non-qualifying service in an establishment under the control of the Government if such transfer has been ordered by a competent authority in the public interest
• 🚗(e) Joining time while on transfer from one post to another

Sub-rule (2) — Commutation of Absence Without Leave

Sub-rule (1) — Automatic Condonation

Sub-rule (2) — Exclusions from Automatic Condonation

Sub-rule (3) — Non-Counting of Interruption Period

• ⏰The period of interruption referred to in sub-rule (1) shall not count as qualifying service

Service rendered by a Government servant on:

• 🌍Foreign service in India or abroad, OR
• 🏛️Deputation to United Nations or other International organisations

Shall count as qualifying service for gratuity provided:

• 💰Contributions in respect of gratuity have been deposited for the said period
• 👤Either by the Government servant himself, OR
• 🏢By the foreign employer

Sub-rule (1) — Regular Verification Points

The Head of Office in consultation with Accounts Officer shall:

• ✅In accordance with the rules for the time being in force, verify the service rendered by such a Government servant
• 📊Determine the qualifying service
• 📋Communicate to him, in Form 1, the period of qualifying service so determined

Sub-rule (2) — Special Cases for Early Verification

Sub-rule (3) — Finality of Verification

Sub-rule (1) — Retirement Gratuity

A Government servant, who has completed five years' qualifying service and who:

• 🎓(i) Retires on attaining the age of superannuation, OR on invalidation
• 📤(ii) Retires or is retired, in advance of the age of superannuation in accordance with rule 56 of the FR, 1922 or rule 12 of the CCS (Implementation of NPS) Rules, 2021
• 🔄(iii) On being declared surplus to the establishment, opts for Special Voluntary Retirement Scheme relating to voluntary retirement of surplus employees
• 🏢(iv) 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/State Government

Sub-rule (2) — Death Gratuity Rates

Where a Government servant dies while in service, the death gratuity shall be payable to his family at the following rates:

Sub-rule (3) — Emoluments for Gratuity Calculation

The emoluments for the purpose of gratuity admissible under this rule, shall be reckoned in accordance with Rule 6.

Sub-rule (4) — Residuary Gratuity

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 annuity under NPS, if any, together with the retirement gratuity are less than 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.

Sub-rule (5) — Definition of 'Family'

Sub-rule (1) — Making Nomination

• 📝A Government servant shall, on his initial confirmation in a service or post, make a nomination in Form 2
• 👥Conferring on one or more persons the right to receive the retirement gratuity or death gratuity payable under rule 22

Sub-rule (2) — Multiple Nominees

• 💰Where a Government servant nominates more than one person, he shall specify the amount of share payable to each nominee
• 📊In such manner as to cover the entire amount of gratuity

Sub-rule (3) — Special Provisions in Nomination

A Government servant may provide in the nomination:

(i) Alternate Nominee:

• 🔄That in respect of any specified nominee who predeceases the Government servant, or who dies after the death of the Government servant but before receiving payment of gratuity
• 👤The right conferred on that nominee shall pass to such other person as may be specified in the nomination

(ii) Invalidation Clause:

• 🚫That the nomination shall become invalid in the event of the happening of the contingency provided therein

Sub-rule (4) — Automatic Invalidation

• ❌The nomination made by a Government servant who has no family at the time of making it, OR the nomination made under the second proviso to clause (i) of sub-rule (3) where he has only one member in his family
• 🔄Shall become invalid in the event of the Government servant subsequently acquiring a family, or an additional member in the family

Sub-rule (5) — Cancellation of Nomination

• ✏️A Government servant may, at any time, cancel a nomination by sending a notice in writing to the Head of Office

Sub-rule (6) — Obligation to Update Nomination

• 📝Immediately on the death of a nominee (in respect of whom no special provision has been made) OR on the occurrence of any event by reason of which the nomination becomes invalid
• 📤The Government servant shall send to the Head of Office a notice in writing cancelling the nomination together with a fresh nomination

Sub-rule (7) — Processing of Nominations

(a) Submission:

• 📤Every nomination made (including every notice of cancellation) shall be sent to the Head of Office

(b) Verification and Countersigning:

• ✅The Head of Office shall immediately verify that the nomination made is in accordance with the provisions of this rule
• 👨‍👩‍👧If the Government servant has a family, verify that nomination is in favour of one or more members of the family
• ✍️The Head of Office shall countersign the nomination indicating the date of receipt and keep it under custody

(c) Service Book Entry:

• 📚Suitable entry regarding receipt of nomination shall be made in the service book of the Government servant concerned

Sub-rule (8) — Effective Date of Nomination

• 📅Every nomination made, and every notice of cancellation given, shall take effect from the date on which it is received by the Head of Office

Sub-rule (1) — Order of Priority for Payment

(a) First Priority — Nominees:

• 👤The gratuity payable under rule 22 shall be paid to the person(s) on whom the right to receive gratuity is conferred by means of a nomination under rule 23

(b) If No Valid Nomination:

• 📋(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 (spouse, sons, unmarried daughters, widowed/divorced daughters), to all such members in equal shares
• 📋(B) If there are no such surviving members as specified in (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 (parents, minor brothers, unmarried/widowed sisters, married daughters, grandchildren), to all such members in equal shares

Sub-rule (2) — Death After Retirement

• 💀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)

Sub-rule (3) — Rights Not Affected by Marriage or Age

Sub-rule (4) — Payment to Minor

Where gratuity is granted to a minor member of the family of the deceased Government servant:

• 👶It shall be payable to the guardian on behalf of the minor

Sub-rule (1) — Suspension of Claim

Sub-rule (2) — After Conclusion of Criminal Proceedings

(a) If Convicted:

• 🚫Is convicted for the murder or abetting in the murder, he shall be debarred from receiving his share of gratuity
• 👨‍👩‍👧Which shall be payable to other eligible members of the family, if any

(b) If Acquitted:

• ✅Is acquitted of the charge, his share of gratuity shall be payable to him

Sub-rule (3) — Applicability to Undisbursed Gratuity

• 📋The provisions of sub-rule (1) and sub-rule (2) shall also apply to the undisbursed gratuity referred to in sub-rule (2) of rule 24

Where a Government servant dies while in service or after retirement without receiving the amount of gratuity and:

• 👨‍👩‍👧Leaves behind no family, AND
• 📝(a) Has made no nomination, OR
• ❌(b) The nomination made by him does not subsist

• 🎓A superannuation gratuity shall be granted in accordance with rule 22 to a Government servant who is retired on his attaining the age of superannuation
• ⏰OR, if the service has been extended beyond superannuation, on expiry of such period of extension

An Invalid Gratuity shall be granted in accordance with rule 22 to a Government servant who:

• 🏥Retires from service on account of any bodily or mental infirmity which permanently incapacitates him for the service
• ⚖️In accordance with rule 16 of the CCS (Implementation of NPS) Rules, 2021
• ✅Who had exercised option or in whose case the default option under rule 10 is for availing benefits under National Pension System

A Government servant who:

• 📤Retires or is retired, in advance of the age of superannuation in accordance with rule 56 of the FR, 1922 or rule 12 of the CCS (Implementation of NPS) Rules, 2021
• 🔄On being declared surplus to the establishment
• ✅Opts for Special Voluntary Retirement Scheme for surplus employees notified by DoPT vide O.M. No. 25013/6/2001-Estt.(A), dated 28th February, 2002 (as amended)

Shall be entitled to gratuity admissible under rule 22.

Sub-rule (1) — Minimum Gratuity

Sub-rule (2) — UPSC Consultation

Sub-rule (1) — Deemed Retirement on Absorption

A Government servant who 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
• 🏛️A body controlled or financed by the Central Government or a State Government

Shall be deemed to have retired from service from the date of such absorption and:

• ✅Subject to sub-rule (4), he shall be eligible, on such absorption, to receive retirement gratuity on the basis of the qualifying service and emoluments on the date of absorption in accordance with rule 22

Sub-rule (2) — Joint Sector Undertakings

• 🤝The provisions of sub-rule (1) shall also apply to Central Government servants who are permitted to be absorbed in joint sector undertakings
• 📋Wholly under the joint control of Central Government and State Governments or Union territory Administrations OR under the joint control of two or more State Governments or Union territory Administrations

Sub-rule (3) — Immediate Absorption Procedure

(a) Relieving Order:

• 📄Where a Government employee joins a corporation or company or body on immediate absorption basis, the relieving order shall be issued in Form 3
• ⏰The relieving order shall indicate the period within which the Government servant shall join

(b) Regularisation of Gap Period:

• 🏖️The period between the date of relief and the date of joining may be regularised by grant of leave due
• 📋If no such leave is due, the period may be regularised by grant of extraordinary leave

(c) Ascertainment of Joining Date:

• ✅The relieving authority, before processing the case for sanction of retirement benefits, shall ascertain the date of joining by the Government servant
• 📤Accept the resignation of the Government servant from the date preceding the date of joining

(d) Severance of Connection:

• 🚫No lien of the Government servant shall be retained in the relieving Department
• 📋All his connections with the Government shall stand severed on his absorption

Sub-rule (4) — Option Where Similar Gratuity Scheme Exists

Where a gratuity scheme similar to the gratuity scheme under these rules exists in a body controlled or financed by the Central Government or a State Government:

• ⚖️He shall be entitled to exercise option either:

• 💰(a) To receive retirement benefits for the service rendered under the Central Government in accordance with sub-rule (1), OR
• 📊(b) To count the service rendered under the Central Government in that body for pension

Sub-rule (5) — Capitalised Value Payment

• 💰Where a Government servant is absorbed in a body and exercises option under clause (b) of sub-rule (4)
• 📋The Government shall discharge its gratuity liability by paying in lump sum as a one time payment
• 📊The gratuity liability shall be the capitalised value of retirement gratuity for the service up to the date of absorption

Sub-rule (6) — Date of Absorption

• 📅The date of absorption shall be determined in accordance with the provisions of rule 15 of the CCS (Implementation of NPS) Rules, 2021

Sub-rule (1) — Police Complaint

• 👮Where a Government servant is missing, the family shall lodge a complaint with the concerned police station
• 📋Obtain report from the police that the Government servant has not been traced despite all efforts
• 📄The report may be the First Information Report or any other report such as Daily Diary or General Diary Entry

Sub-rule (2) — Application for Gratuity

• ⏰The family after six months of lodging police complaint may apply in Form 4
• 📤For the grant of retirement gratuity to the Head of Office of the organisation where the Government servant had last served

Sub-rule (3) — Sanction Formalities

The retirement gratuity may be sanctioned by the concerned Ministry or Department after observing the following formalities:

• ✅(i) Ensure that the complaint lodged with the police and non-traceable report given by the police is correct
• 📄(ii) An Indemnity bond in Proforma-B shall be taken from the nominee or dependents
• 📋That the retirement gratuity shall be adjusted against the payment due to the Government servant in case he appears on the scene and makes any claim

Sub-rule (4) — Processing and Payment

(a) Processing:

• 📋The Head of Office shall process the case in Form 5 for grant of retirement gratuity

(b) Timeline and Interest:

• ⏰The retirement gratuity shall be paid to the family within three months of the date of application
• 💰In case of any delay, the interest shall be paid at the applicable Public Provident Fund rates
• ⚖️Responsibility for delay shall be fixed in accordance with rule 44

(c) Difference Between Death and Retirement Gratuity:

• 💰The difference between the death gratuity and retirement gratuity shall be payable after:

• 💀The death of the employee is conclusively established, OR
• ⏰On the expiry of the period of seven years from the date of the police report

Sub-rule (5) — Recovery of Government Dues

• 💳The Head of Office shall assess all the Government dues outstanding against the Government servant
• 📋Effect their recovery in accordance with rule 45 before sanctioning the payment of gratuity

• 📝The Head of Office shall write to the Directorate of Estates
• ⏰At least one year before the anticipated date of retirement
• 🏠For Government servant who was or is in occupation of a Government accommodation (allottee)
• 📋For issuing a 'No Demand Certificate' in respect of the period preceding eight months of the retirement
• ⚖️In accordance with rule 22 of the CCS (Implementation of NPS) Rules, 2021

Sub-rule (1) — Three Stages

The Head of Office shall divide the period of preparatory work of one year into the following three stages:

(a) First Stage — Verification of Service

(i) Initial Verification:

• 📚The Head of Office shall go through the service book and verify whether certificates of verification for service subsequent to the service verified under rule 21 are recorded

(ii) Unverified Service:

• ✅For unverified portion(s) of service, verify based on pay bills, acquittance rolls or other relevant records
• 📄Such as last pay certificate, pay slip for month of April (which shows verification for previous financial year)
• 📝Record necessary certificates in the service book

(iii) Service in Another Office/Department:

• 📤Where service for any period is not capable of being verified and was rendered in another office or Department
• 🔄The present Head of Office shall refer the said period to the Head of Office where the Government servant served during that period

(iv) Response from Other Office:

• ✅On receipt of communication, that Head of Office shall verify the service and send necessary certificates
• ⏰Within two months from the date of receipt of reference

(v) Deemed to Qualify:

(vi) Fixing Responsibility:

• ⚖️Where it is found that the Head of Office and other concerned authorities had failed to communicate any non-qualifying period of service
• 📋The Secretary of the administrative Ministry or Department shall fix responsibility for such non-communication

(vii) Completion Timeline:

(viii) Written Statement by Government Servant:

• 📝Where any portion of service is not capable of being verified in the manner specified above
• ✍️The Government servant shall be asked to file a written statement on plain paper within a month
• 📋Stating that he had in fact rendered service for that period
• ⚖️With a declaration as to the truth of that statement

(ix) Admission of Service:

• ✅The Head of Office shall, after taking into consideration the facts in the written statement, admit that portion of service as having been rendered

(x) False Information:

(b) Second Stage — Making Good Omissions in Service Book

(i) Identify Omissions:

• 🔍The Head of Office while scrutinising the certificates shall identify any omissions, imperfections or deficiencies
• 📊Which have a direct bearing on the determination of emoluments and qualifying service for gratuity

(ii) Complete Verification:

• ✅Every effort shall be made to complete the verification of service and make good the omissions, imperfections or deficiencies

(iii) Incapable of Being Made Good:

• ❌Any omission, imperfection or deficiency which is incapable of being made good shall be ignored
• 📋Service qualifying for gratuity shall be determined on the basis of the entries in the service book

(iv) Verification of Emoluments:

• 💰For calculation of average emoluments, verify from the service book the correctness of emoluments drawn or to be drawn during the last ten months of service

(v) Period of Emoluments Verification:

(c) Third Stage — Certificate to Retiring Government Servant

As soon as the second stage is completed, but not later than eight months prior to the date of retirement:

(i) Furnish Certificate:

• 📋Furnish to the retiring Government servant a certificate regarding:

• 📅The length of qualifying service proposed to be admitted for gratuity
• 💰The emoluments and average emoluments proposed to be reckoned for retirement gratuity

(ii) Opportunity for Objection:

• 📝Direct the retiring Government servant to furnish reasons for non-acceptance, supported by relevant documents
• ⏰Within two months if the certified service and emoluments are not acceptable

• 📅Superannuation cases: The Head of Office shall complete Part I of Form 6 not later than four months before the date of retirement
• 📤Other retirement cases: Complete Part I of Form 6 within two months after retirement

Sub-rule (1) — Documents to be Forwarded

After complying with rules 36 and 37, the Head of Office shall forward:

• 📄Form 6 duly completed
• 📋A covering letter in Form 7
• 📚Service book of the Government servant duly completed, up to date
• 📎Any other documents relied upon for the verification of service
• 📤To the Accounts Officer

Sub-rule (2) — Retention of Copy

• 📋The Head of Office shall retain a copy of Form 6 and Form 7 for his record

Sub-rule (3) — Timeline for Forwarding

• 📋Where after the Forms for payment of gratuity have been forwarded to the Accounts Officer
• ⚠️Any event occurs which has a bearing on the amount of gratuity admissible
• 📤The fact shall be promptly reported to the Accounts Officer by the Head of Office

Sub-rule (1) — Initial Intimation

• 💳The Head of Office shall, after ascertaining and assessing the Government dues referred to in rule 45
• 📋Furnish the particulars thereof to the Accounts Officer in Form 7

Sub-rule (2) — Additional Dues

• 📤Where after the particulars of Government dues have been intimated, any additional Government dues come to notice
• ⚡Such dues shall be promptly reported to the Accounts Officer

Sub-rule (1) — When Provisional Gratuity is Sanctioned

Where in spite of following the procedure laid down in rule 36:

• ⏰It is not possible to forward Forms for gratuity within the period specified, OR
• 📤Forms have been forwarded but the Accounts Officer has returned them for eliciting further information
• 📅AND the Government servant is likely to retire before gratuity can be finally assessed

The Head of Office shall:

• 📋Rely upon such information as may be available in the official records
• 💰Without delay, determine the amount of provisional retirement gratuity

Sub-rule (2) — Other Retirements

• 📤In case of retirement otherwise than on superannuation
• ⏰The Head of Office shall sanction provisional retirement gratuity within two months till final assessment

Sub-rule (3) — Sanction and Payment Procedure

Where the amount of gratuity cannot be determined for reasons other than Departmental or Judicial proceedings:

(a) Letter of Sanction:

• 📝Issue a letter of sanction addressed to the Accounts Officer (copy to Government servant)
• 💰Authorising hundred per cent of the gratuity as provisional gratuity
• 🔒Withholding of ten per cent of gratuity

(b) Deductions and Drawing:

• 📋Specify in the letter the amount recoverable from gratuity under sub-rule (1) of rule 40
• 💰Draw the amount of provisional gratuity after deducting the amount specified in clause (a) and the dues specified in rule 45
• 📊In the same manner as pay and allowances are drawn

Sub-rule (4) — Revision

• 🔄The amount of gratuity payable under sub-rule (2) or (3) shall, if necessary, be revised on completion of detailed scrutiny

Sub-rule (5) — Final Settlement Within Six Months

(a) Within Six Months:

• ✅If the final amount has been determined by the Head of Office in consultation with Accounts Officer before expiry of six months from retirement
• 📤The Accounts Officer shall direct the Head of Office to draw and disburse the difference
• 💳After adjusting Government dues which may have come to notice after payment of provisional gratuity

(b) Excess Payment:

Sub-rule (6) — After Six Months

Sub-rule (7) — Release of Withheld Amount

• 💰On issue of authority order, the Head of Office shall release the amount of withheld gratuity under clause (a) of sub-rule (3)
• 💳After adjusting Government dues which may have come to notice after payment of provisional gratuity

Sub-rule (8) — Government Accommodation Allottees

• 🏠Where a Government servant is or was an allottee of Government accommodation
• 📋The withheld amount shall be paid on receipt of 'No Demand Certificate' from the Directorate of Estates

Sub-rule (1) — Processing by Accounts Officer

(a) Superannuation:

• ✅On receipt of Forms, the Accounts Officer shall apply requisite checks
• 📋Record the account enfacement in Part II of Form 6
• 💰Assess the amount of gratuity
• ⏰Issue authority letter not later than one month in advance of the date of retirement on attaining superannuation

(b) Other Retirements:

• 📊Apply requisite checks, complete Part II of Form 6, assess amount and dues
• ⏰Issue authority letter within three months of the date of receipt of Forms from Head of Office

Sub-rule (2) — Intimation to Head of Office

• 📤The amount determined shall be intimated to the Head of Office
• 💰With remarks that the amount may be drawn by preferring a bill to the Pay and Accounts Officer
• 💳And disbursed after adjusting Government dues, if any, referred to in rule 45

Sub-rule (3) — Adjustment of Withheld Amount

• 💰The amount of gratuity withheld under sub-rule (5) of rule 46 shall be adjusted against outstanding licence fee
• 📋Intimated by the Directorate of Estates
• 💵The balance, if any, refunded to the retired Government servant

Sub-rule (1) — Deputation to Another Central Government Department

• 🔄In case of Government servant who retires while on deputation to another Central Government Department
• 👔Action to authorise gratuity shall be taken by the Head of Office of the borrowing Department

Sub-rule (2) — Deputation to State Government or Foreign Service

• 🌍In case of retirement while on deputation to a State Government or while on foreign service
• ⚖️Action shall be taken by the Head of Office or Cadre authority which sanctioned deputation

Sub-rule (1) — When Interest is Payable

Sub-rule (2) — Consideration by Secretary

• ⚖️Every case of delayed payment shall be considered by the Secretary of the Ministry or Department
• ✅Where the Secretary is satisfied that delay was caused on account of administrative reasons or lapse
• 💰The Secretary shall sanction payment of interest

Sub-rule (3) — Presidential Sanction

• 🏛️The concerned Ministry or Department shall issue Presidential sanction for payment of interest
• 📋After the Secretary has sanctioned the payment of interest under sub-rule (2)

Sub-rule (4) — Fixing Responsibility

Explanation (1) — Superannuation Delay

Explanation (2) — Determination of Delay and Interest

Sub-rule (1) — Duty of Head of Office

• 💳It shall be the duty of the Head of Office to ascertain and assess Government dues payable by a Government servant due for retirement

Sub-rule (2) — Adjustment Against Gratuity

• 💰The Government dues which remain outstanding till the date of retirement shall be adjusted against the amount of retirement gratuity becoming payable

Sub-rule (1) — Intimation from Directorate of Estates

• 📋The Directorate of Estates on receipt of intimation from Head of Office shall scrutinise its records
• ⏰Inform the Head of Office within two months if any licence fee was recoverable
• 📅In respect of the period prior to eight months of retirement

Sub-rule (2) — Recovery from Pay and Allowances

• 💰The Head of Office shall ensure that licence fee for the next eight months (up to date of retirement) is recovered every month from the pay and allowances of the allottee

Sub-rule (3) — Recovery of Outstanding Licence Fee

• 📋Where Directorate intimates the amount of licence fee recoverable for the period mentioned in sub-rule (1)
• 💵The Head of Office shall ensure recovery in installments from current pay and allowances
• 💰Where entire amount is not recovered from pay, the balance shall be recovered out of gratuity before payment is authorised

Sub-rule (4) — Licence Fee for Permissible Retention Period

• 🏠The Directorate shall also inform the amount of licence fee for retention of Government accommodation for the permissible period beyond retirement
• 💰The Head of Office shall adjust that amount from gratuity together with the unrecovered licence fee, if any

Sub-rule (5) — Withholding 10% if Unable to Determine

Sub-rule (6) — Responsibility of Directorate

• 📋The recovery of licence fee (where not possible to determine) and damages (for occupation beyond permissible period) shall be the responsibility of the Directorate of Estates
• 💰The withheld amount shall be paid immediately on production of 'No Demand Certificate' from the Directorate after actual vacation

Sub-rule (7) — Timely Issue of No Demand Certificate

Sub-rule (8) — Recovery from Dearness Relief

• 💳Licence fee or damages remaining unpaid after adjustment from withheld amount may be recovered by the Directorate through concerned Accounts Officer
• 🚫From the dearness relief without the consent of the pensioners
• ⏸️No dearness relief shall be disbursed until full recovery has been made

Sub-rule (1) — Assessment Timeline

• 💳For dues other than those pertaining to occupation of Government accommodation (as referred to in clause (b) of Explanation (1) of rule 45)
• ⏰The Head of Office shall take steps to assess the dues one year before the date of retirement on superannuation
• 🏖️Or on the date he proceeds on leave preparatory to retirement, whichever is earlier

Sub-rule (2) — Completion of Assessment

Sub-rule (3) — Adjustment Against Gratuity

• 💰The dues as assessed under sub-rule (2)
• 📋Including those dues which come to notice subsequently
• 💳Which remain outstanding till the date of retirement
• ✅Shall be adjusted against the amount of retirement gratuity becoming payable

Sub-rule (1) — Ascertainment Upon Death

Where the Head of Office has received an intimation about the death of a Government servant while in service, he shall ascertain,—

(a)

• 📋(i) if the deceased Government servant had nominated any person or persons to receive the gratuity; and
• 👥(ii) if the deceased Government servant had not made any nomination or the nomination made does not subsist, the person or persons to whom the gratuity may be payable.

• 📝(b) The Head of Office shall, then, address the person concerned in Form 8, for making a claim in Form 9.

Sub-rule (2) — Government Accommodation Allottees

• 🏠Where on the date of death, the Government servant was an allottee of Government accommodation
• 📤The Head of Office shall address the Directorate of Estates for the issue of No Demand Certificate
• ⚖️In accordance with the provisions of sub-rule (1) of rule 54

Sub-rule (1)(a) — Simultaneous Action and Timeline

Sub-rule (1)(b) — Scrutiny of Service Book

• 📚The Head of Office shall go through the service book of the deceased Government servant
• ✅Satisfy himself as to whether certificates of verifications of service for the entire service are recorded therein

Sub-rule (1)(c) — Unverified Service

• 🔍(i) If there are any periods of unverified service, the Head of Office shall accept the unverified portion of service as verified on the basis of the available entries in the service book and may rely on any other relevant material to which he may have ready access.
• ⚠️(ii) While accepting the unverified portion of service, the Head of Office shall ensure that service was continuous and was not forfeited on account of dismissal, removal or resignation from service, or for participation in strike.

Sub-rule (2)(a) — Verification of Emoluments

Sub-rule (2)(b) — Extraordinary Leave Cases

• 🏖️In case the Government servant was on extraordinary leave on the date of death
• 📅The correctness of emoluments for a maximum period of one year which he drew preceding the date of commencement of extraordinary leave shall be verified

Sub-rule (3) — Completion Timeline

Where the service book has not been maintained properly and it is not possible for the Head of Office to accept the unverified portion of service as verified, the Head of Office shall not wait for the verification of the entire spell of service, and shall determine the amount of death gratuity as follows:—

Sub-rule (1) — Documents to be Forwarded

On receipt of claim or claims, the Head of Office shall complete item 9 of Form 10 and send to the Accounts Officer:

• 📄Form 10 in original
• 📋A covering letter in Form 7
• 📚Government servant's service book duly completed up to date
• 📎Any other documents relied upon for verification of service claimed
• ⏰This shall be done not later than one month of the receipt of claim by the Head of Office

Sub-rule (2) — Retention of Copy

• 📋The Head of Office shall retain one copy of the Form 10 for his office record

Sub-rule (3) — Particulars of Government Dues

The Head of Office shall draw the attention of the Accounts Officer to the following details of Government dues outstanding against the deceased Government servant:—

• 💳(a) Government dues as ascertained and assessed in terms of rule 54 and recoverable out of the gratuity before payment is authorized
• 🔒(b) Amount of gratuity to be held over partly for adjustment of Government dues not yet assessed, and partly as margin for adjustment in light of final determination

Sub-rule (4) — When Claims Have Not Been Received

• 📤(a) Where Form 10 has been completed but claim or claims have not been received from the beneficiary or beneficiaries, the Head of Office shall forward Form 10 and documents to the Accounts Officer without the claim or claims
• ⚡(b) As soon as the claim or claims are received by the Head of Office, they shall immediately be forwarded to the Accounts Officer

Sub-rule (5) — When Government Dues Have Not Been Assessed

• 📝(a) Where Form 10 has been completed but Government dues to be recovered have not been assessed, the Head of Office shall forward Form 10 to the Accounts Officer leaving unfilled item 9 of Part I of the said Form
• 📤(b) As soon as the Head of Office assesses Government dues, they shall immediately be forwarded to the Accounts Officer with a request that item 9 of Part I of Form 10 may be filled

Sub-rule (1) — Procedure for Head of Office

After the documents referred to in rule 51 have been sent to the Accounts Officer, the Head of Office shall draw hundred per cent. of the gratuity adopting the following procedure:—

• 📝(a) Issue a sanction letter in favour of claimant or claimants, endorsing a copy to the Accounts Officer, indicating the amount of hundred per cent. of the gratuity as determined
• 💳(b) Indicate in the sanction letter the amount recoverable out of the gratuity under sub-rule (3) of rule 51
• 💰(c) After issue of the sanction letter, draw by preferring a bill to the Pay and Accounts Officer for hundred per cent. of the gratuity after deducting the dues mentioned in clause (b)

Sub-rule (2) — Immediate Disbursement

• ⚡The Head of Office shall disburse the gratuity immediately after the same have been drawn under sub-rule (1)

Sub-rule (3) — Intimation to Accounts Officer

• 📤The Head of Office shall inform the Accounts Officer as soon as the gratuity has been paid to the claimant or claimants

Sub-rule (1) — Processing by Accounts Officer

Sub-rule (2) — Determination and Disbursement of Balance

• 📊(a) The Accounts Officer shall determine the amount of the balance of gratuity after adjusting the amount, if any, outstanding against the deceased Government servant
• 📤(b) The Accounts Officer shall intimate the amount of the balance to the Head of Office with remarks that the amount may be drawn and disbursed to the person or persons to whom the provisional gratuity was paid
• 🏠(c) The amount of gratuity withheld under clause (b) of sub-rule (1) of rule 54 shall be adjusted by the Head of Office against outstanding licence-fee under clause (viii) of sub-rule (1) of rule 54, and the balance, if any, refunded
• 💰(d) The amount of the balance of gratuity may be drawn by preferring a bill to Pay and Accounts Officer and disbursed by the Head of Office

Sub-rule (3) — Excess Payment Protection

Sub-rule (1) — Dues Pertaining to Government Accommodation

• 👤(a) Name of the deceased Government servant with designation
• 🏠(b) Particulars of the accommodation (quarter No., type and locality)
• 📅(c) Date of death of Government servant
• 🏖️(d) Whether the Government servant was on leave at the time of his death and, if so, the period and nature of leave
• 🏘️(e) Whether the Government servant was enjoying rent-free accommodation
• 💰(f) The period up to which licence fee had been recovered, the monthly rate of recovery and particulars of the pay bill under which last recovery was made
• 📋(g) If the licence fee had not been recovered up to the date of death and the family intends to retain Government accommodation for the permissible period, details of:—

• 💰(ii) The Head of Office shall recover from the death gratuity the amount of licence fee as intimated to the Directorate of Estates under clause (i)
• 🏢(iii) The recovery of licence fee for occupation of Government accommodation beyond a period of four months shall be the responsibility of the Directorate of Estates

• 🔒(v) After receipt of information under clause (iv), the Head of Office shall withhold the amount as intimated by the Directorate of Estates, or ten per cent. of the death gratuity in case no specified amount is intimated

• 🔍(vii) Where intimation is received from the Directorate of Estates regarding outstanding licence fee, the Head of Office shall verify from acquittance rolls if the outstanding amount had already been recovered from pay and allowances — if so, draw the attention of the Directorate to the relevant pay bills and pay the withheld amount to the beneficiaries
• 💳(viii) Where the outstanding licence fee was not recovered from pay and allowances, the outstanding amount shall be adjusted against the gratuity withheld under clause (v) and the balance, if any, repaid to the beneficiaries

Sub-rule (2) — Dues Other Than Government Accommodation

Sub-rule (1) — Deputation to Another Central Government Department

• 🔄In case of a Government servant who dies while on deputation to another Central Government Department
• 👔Action to authorise death gratuity shall be taken by the Head of Office of the borrowing Department

Sub-rule (2) — Deputation to State Government or Foreign Service

• 🌍In case of a Government servant who dies while on deputation to a State Government or while on foreign service
• ⚖️Action shall be taken by the Head of Office or the cadre authority which sanctioned the deputation

• 🇮🇳The gratuity admissible under these rules shall be payable in rupees in India only

• 💰Except as otherwise provided in these rules, a gratuity shall be paid in lump sum

• 📋Save as otherwise provided in these rules, the Treasury Rules of the Central Government shall apply in regard to the procedure of payment of gratuity

• ⚖️Where any doubt arises as to the interpretation of these rules, it shall be referred to the Government in the Department of Pension and Pensioners' Welfare for decision

• 🔓Where any Ministry or Department is satisfied that the operation of any of these rules causes undue hardship in any particular case, the Ministry or Department may, by order for reasons to be recorded in writing, dispense with or relax the requirements of that rule
• ⚖️To such extent and subject to such exceptions and conditions as it may consider necessary for dealing with the case in a just and equitable manner

Sub-rule (1) — Reference to Other Rules

Sub-rule (2) — Power to Issue Orders

• 🏛️The Central Government may issue orders or instructions to regulate any matters for which there is no provision in these rules
• 📅Until such rules are made, such matters shall be regulated as per orders or instructions issued from time to time