Can Central Govt employees get additional gratuity on re-appointment? Here's what new rules say

The Department of Pension and Pensioners’ Welfare (DoPPW) has notified the Central Civil Services (Payment of Gratuity under the National Pension System) Amendment Rules, 2025.

The amended rules will apply to Central Government employees and retirees covered under the National Pension System (NPS)

As per the notification, there is a limitation on the amount of gratuity paid to Central Government employees in case of their re-employment after superannuation or retirement.

"A Government servant who, having retired on superannuation gratuity or retiring gratuity or compulsory retirement gratuity or who is in receipt of a compassionate gratuity on having been dismissed or removed from service, is subsequently re-employed, shall not be entitled to a separate gratuity for the period of his re-employment," the notification said.

However, there is an exception to the above rule in the case of a job switch from an autonomous body or a PSU.

Additional gratuity will be allowed in case of re-appointment in the government service after working in an autonomous body or a public sector undertaking.

"Provided that a Government servant who was previously appointed in an autonomous body or a public sector undertaking and was subsequently appointed, with proper permission of that body or undertaking, in the Government service, shall be eligible for gratuity for the service rendered in the Government in addition to the gratuity, if any, received by him from the autonomous body or the public sector undertaking for the service rendered in that body or undertaking," the notification said.

However, the total amount of gratuity in the above case shall not be more than what the employee would have received on retirement if he had served full time with only one organisation.

"Provided further that the total amount of gratuity in respect of the service rendered in the autonomous body or the public sector undertaking and the service rendered under the Government shall not exceed the amount that would have been admissible taking into account the entire service rendered by the Government servant in the autonomous body or the public sector undertaking and the Government and the emoluments on retirement from Government," the notification said.

The notification has also provided the following two explanations for the above rules:

"A Government servant shall be deemed to have been appointed in the Government with proper permission if he had applied for the service or post in the Government with previous permission of the autonomous body or the public sector undertaking and the order of the autonomous body or the public sector undertaking clearly indicates that the employee is resigning to join the post in the Government with proper permission of the autonomous body or the public sector undertaking, as the case may be." the notification said.

In case of re-appointment from an autonomous body to government service, the liability of payment of previous gratuity will not be on the government.

"Gratuity, if any, on account of service rendered in an autonomous body or a public sector undertaking shall be paid by the concerned autonomous body or the public sector undertaking itself and there shall be no liability on the part of the Government towards gratuity for the service rendered by the Government servant in the said autonomous body or the public sector undertaking before joining service under the Government," the notification said.