The Department of Pension and Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances & Pensions has issued an important Office Memorandum (OM No. 5.2/9/2025-P&PW(F) (11185) dated 04 October 2025. This OM provides clarification regarding the coverage of offices for payment of gratuity under the Central Civil Services (Pension) Rules, 2021 and the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021.
Background
Earlier, vide OM No. 28/03/2024-P&PW(B)/Gratuity/9559 dated 30 May 2024, the DoPPW had enhanced the maximum limit of gratuity payable to Central Government civilian employees from ₹20 lakh to ₹25 lakh. This enhancement applied to employees covered under both the CCS (Pension) Rules, 2021 and CCS (Payment of Gratuity under NPS) Rules, 2021.
Clarification Issued
Despite the earlier order, DoPPW continued to receive several references and RTI applications seeking clarification about whether these gratuity rules are also applicable to other entities such as:
- Societies
- Banks
- Port Trusts
- RBI
- Public Sector Undertakings (PSUs)
- Autonomous Bodies
- Universities
- State Governments
The Department has now clarified that the CCS (Pension) Rules, 2021 and the CCS (Payment of Gratuity under NPS) Rules, 2021 are only applicable to Central Government civil employees.
These rules do not apply to the above-mentioned organizations. Queries regarding the rules governing gratuity in such bodies should be directed to the concerned organization or their administrative Ministry/Department.
Key Takeaway
The enhanced gratuity limit of ₹25 lakh applies only to Central Government civilian employees.
Other bodies like PSUs, banks, universities or state governments are governed by their own service rules or specific regulations.
Any query regarding gratuity coverage in those organizations should be addressed to the concerned administrative authority.
This clarification will help remove confusion among departments and employees regarding the applicability of gratuity rules. Ministries and Departments have been advised to give wide publicity to this Office Memorandum.
Source : Office Memorandum No. 5.2/9/2025-P&PW(F) (11185), Department of Pension & Pensioners’ Welfare, Government of India, dated 04 October 2025.
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