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Relief for Govt Employees: Gratuity Benefits Clarified for NPS Staff from Autonomous Bodies – Centre Clarifies in Rajya Sabha

Employees Moving from Autonomous Bodies to Government Roles Will Benefit, Subject to Conditions
Indian Masterminds Stories

New Delhi: In a significant clarification for thousands of government employees, the Department of Personnel and Training (DoPT) has confirmed that service rendered in autonomous bodies will be counted for the purpose of gratuity upon appointment to the Central Government, provided certain conditions are met. The announcement was made in a written reply in the Rajya Sabha on Thursday by Union Minister of State for Personnel, Dr. Jitendra Singh.

This clarification addresses long-standing doubts among employees working under the National Pension System (NPS) who shift from autonomous bodies to central government service.

read also: CAT Orders DoPT to Relieve IAS Officer Siva Sankar Lotheti Within Two Weeks or Face Action

What the Rule Says

Dr. Singh explained that while the Central Civil Services (CCS) Rules, 2021, issued by the Department of Pension and Pensioners’ Welfare (DoPPW), are not automatically applicable to employees of autonomous bodies, an important exception exists.

DoPPW Office Memorandum No. 7/5/2012-P&PW/B dated 12th February, 2020, provides that on mobility from autonomous bodies having NPS with provision of retirement/death gratuity similar to that in the central government, the service rendered in the autonomous body would be counted for the grant of gratuity in the central government,” Dr. Singh said.

The provision applies only if:

The autonomous body follows a gratuity scheme similar to the Central Government;

The employee resigns with proper permission;

The resignation is followed by a technical resignation to take up central government service.

Gratuity Payments Remain Body-Specific Until Transfer

The minister also clarified that autonomous bodies have their own gratuity rules, which remain applicable to employees until their transfer. The rules of the DoPPW do not apply suo motu (automatically) to such institutions.

The payment of gratuity, interest, or duration of service depends on the gratuity rules of the concerned autonomous body,” Dr. Singh added.

read also: India Post Rolls Out IT 2.0 in Delhi: 414 Post Offices to Adopt Next-Gen Digital System- Check Details

Federation Welcomes the Clarification

Manjeet Singh Patel, President of the All India NPS Employees Federation, welcomed the clarification and said it would bring relief to many employees who were unsure about the treatment of their past service.

It is a very welcoming move by the government to assert that the service rendered in an autonomous body would be counted for the grant of gratuity in the central government. It will help in removing any doubt from the minds of the government employees concerned,” Patel stated.

The clarification also addresses a query raised in Parliament regarding whether an NPS employee can choose not to count past service in an autonomous body and instead receive gratuity for that service before joining the central government.


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