Department of Pension & Pensioners’ Welfare (DoPPW) issued a clarification on the eligibility for gratuity for Central Government employees covered under the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021, specifically addressing cases of resignation. The Office Memorandum highlights that Rule 22 permits the grant of retirement gratuity only upon specific events such as superannuation, invalidation, premature retirement, or absorption into a Public Sector Undertaking/Body. Crucially, Rule 17 stipulates that a normal resignation results in the forfeiture of past service, which consequently makes the employee ineligible for gratuity. The only exceptions where past service is not forfeited, allowing for potential gratuity benefit (or deemed retirement for absorption), are cases of technical resignation (resigning to take up another government appointment with proper permission) or resignation submitted for the purpose of absorption into a controlled corporation or body (Rule 32). Therefore, a standard resignation after completing five years of service does not qualify for gratuity payment.
No. 2/8/2025-P&PW(F)/11164
Government of India
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 24th October, 2025
OFFICE MEMORANDUM
Subject : Clarification regarding eligibility for payment of gratuity to the Central Government Servant under Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021 on resignation.
Department of Pension & Pensioners’ Welfare (DoPPW) has been receiving various references/RTI applications etc seeking information / clarification regarding eligibility for payment of gratuity to the Central Government Servant under SIPS on resignation.
2. The Rule position with reference to the government employees covered under the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021 is as under:
Rule 22 – Regulation of Retirement Gratuity and Death Gratuity:
22. Retirement gratuity or death gratuity. – (1) A Government servant, who has completed five years’ qualifying service and who, –
(i) retires on attaining the age of superannuation, or on invalidation, or
(ii) retires or is retired, in advance of the age of superannuation in accordance with rule 56 of the Fundamental Rules, 1922 or rule 12 of the Central Civil Services (Implementation of National Pension System) Rules, 2021; or
(Hi) on being declared surplus to the establishment in which he was serving, opts for Special Voluntary Retirement Scheme relating to voluntary retirement of surplus employees; or
(iv) on has been permitted to be absorbed in a service or post in or under a Corporation or Company wholly or substantially owned or controlled by the Central Government or a State Government or in or under a body controlled or financed by the Central Government or a State Government, shall, on his retirement, be granted retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service, subject to a maximum of 16V2 times the emoluments.
Rule 17 Forfeiture of service on resignation:
(1) Resignation from a service or a post, unless it is allowed to he withdrawn in the public interest by the appointing authority, entails forfeiture of past service.
(2) A resignation shall not entail forfeiture of past service if it has been submitted to take up, with proper permission, another appointment, whether temporary or permanent, under the Government where service qualities.
(5) A resignation submitted for the purpose of rule 32 shall not entail forfeiture of past service under the Government.
Rule 32 : Benefit on absorption in or under a corporation, company or body:
(1) A Government servant who has been permitted to he absorbed in a service or post in or under a corporation or company wholly or substantially owned or controlled by the Central Government or a State Government or in or under a body controlled or financed by the Central Government or a State Government, shall be deemed to have retired from service from the date of such absorption and, subject to sub-rule (4), he shall be eligible, on such absorption, to receive retirement gratuity on the basis of the qualifying service and emoluments on the date of absorption in accordance with rule 22
3. lt is observed from the above that retirement gratuity after completing of 5 years’ of service is applicable only on retirement as detailed in Rule 22 above. It is also clear that resignation [(except technical resignation as mentioned under Rule 17 (2) above or deemed retired / absorption as mentioned in Rule 17(5) and Rule 32 above)] forfeits past services and no gratuity is payable in such cases.
4. The contents of this Office Memorandum may please be given wide publicity and brought to the notice of all concerned.
5. 
(Dilip Kumar Soho)
Under Secretary to the Covt.of India
Tele. No. 011-24641627
To,
All Ministries/Departments/Organisations.
(As per standard list)
Copy to:
1. President’s Secretariat/Vice President’s Secretariat/Prime Minister’s Office/Supreme Court!Rajya Sabha Secretarianok Sabha Secretariat/ Cabinet Secretariat/ UPSC 1 CV CI C&AG/ Central Administrative Tribunal (Principal Bench), New Delhi.
2. All Desks/Officers in the DoPPW.
