Big Gratuity Relief! Govt’s New Rule Brings Extra Benefit for Employees

The central government has clarified the gratuity rules under the NPS. This order states that a second gratuity won't be available upon re-employment, but there are conditional benefits for employees coming from PSUs or state government jobs. 

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A guarantee of post-retirement security

For central govt staff, gratuity is key for retirement security. A new order for NPS employees clarifies when gratuity is limited and when you get the full amount.

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What will be its impact on re-employment?

The government cited Rule 4A to prevent double benefits. It clarifies that retired staff who got gratuity won't get it again for a second term upon re-employment.

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The news is somewhat relieving for employees

For those from a PSU or state government, the rules differ. If you joined the central govt with permission, the news is relieving, but there's a catch.

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The government has imposed a limit on it

If from a PSU, you keep your gratuity and get another from the central govt. But the total can't exceed the amount for continuous service. Same rule for state govt joiners.

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Good news for military personnel: No 'limit' will be imposed

The biggest relief is for ex-servicemen. The government clarified the 'gratuity limit' rule won't apply to them. They'll get full civil service gratuity with no deductions.