Press Information Bureau
Government of India
Ministry of Finance
Government of India
Ministry of Finance
03-May-2013
Gratuity Pay under New Pension System
Death-cum-Retirement Gratuity is paid to Central Government employees
under New Pension System (NPS) as it is paid under the old pension
scheme. The monthly annuity under the New Pension System (NPS) is only a
replacement of pension on retirement and family pension of death after
retirement.
The benefits of Death cum
Retirement Gratuity (DCRG) and pension/family pension have been
provisionally allowed, vide the Office Memorandum of Department of
Pension and Pensioners’ Welfare No. 38/41/06-P & PW(A) dated
5.5.2009 in respect of Central Government servants covered under NPS in
cases where a Government Servant is retired on invalidation/disability
and in the case of death of a Government servant in service on the same
rates as are applicable under the old pension scheme Central Civil
Service (Pension) Rules, 1972.
The retirement gratuity is payable to the retiring Government servant. A
minimum of 5 years’ qualifying service and eligibility to receive
service gratuity/pension is essential to get this one time lump sum
benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic
Pay plus Dearness Allowance drawn before retirement for each completed
six monthly period of qualifying service.
The maximum retirement gratuity payable is 16½ times the Basic Pay,
subject to a maximum of Rs. 10 lakh. If the Government Servant dies
while in service, the death gratuity shall be paid to his family at
rates furnished in the table below:
Sl. No
|
Length of Qualifying Service
|
Rate of Death Gratuity
|
1.
|
Less than one year
|
2 times of emoluments
|
2.
|
One year or more but less than 5 years
|
6 times of emoluments
|
3.
|
5 years or more but less than 20 years
|
12 times of emoluments
|
4.
|
20 years or more
|
Half of emoluments for every completed
six monthly period of qualifying service subject to a maximum of 33 times of emoluments. |
This was stated by Minister of State for Finance, Shri Namo Narain
Meena, in written reply to a question in the Lok Sabha on 03rd May.
PIB