The Indian government has extended Retirement Gratuity and Death Gratuity benefits to Central Government employees covered by the Unified Pension Scheme. This clarification, issued by the Department of Pension and Pensioners’ Welfare on June 18, 2025, follows the Ministry of Finance’s notification of January 24, 2025, introducing the Unified Pension Scheme as an option for new Central Government civil service recruits from April 1, 2025. Employees opting into this scheme, which provides a one-time option for those initially under the National Pension System (NPS), will now be eligible for these gratuity benefits under the existing Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021. This directive was issued after consultation with the Ministry of Finance and, for Indian Audit and Accounts Department personnel, with the Comptroller and Auditor General of India.
No. 57/01/2025-P&PW(B)/UPS/10498
Government of India
Ministry of Personnel, P.G. and Pensions
Department of Pension and Pensioners’ Welfare
Lok Nayak Bhawan, Khan Market, 3
New Delhi, the 18 June, 2025
OFFICE MEMORANDUM
Subject: Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Central Government employees covered by Unified Pension Scheme — reg.
The undersigned is directed to refer to the Ministry of Finance, Department of Financial Service’s Notification No. FS-1/3/2023-PR dated 24.01.2025 regarding introduction of the Unified Pension Scheme as an option under NPS for the recruits to the Central Government civil service w.e.f. 01.04.2025 giving one time option to the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme.
2. Accordingly, it is clarified that the Central Government employees covered by Unified Pension Scheme shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.
3. This issues in consultation with of Ministry of Finance, Department of Expenditure vide ID Note No. 1(18)/EV/2024 dated 03.06.2025.
4. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
(Dhrubajyoti Sengupta)
Joint Secretary to the Government of India
To,
1. All Central Govt. Ministries / Departments.
2. Department of Expenditure, Ministry of Finance, North Block, New Delhi.
3. C&AG, Bahadur Shah Zafar Marg, New Delhi.
4. Ministry of Railways, Railway Board, for information, New Delhi.
5. Department of Personnel and Training, North Block, New Delhi.
6. Department of Financial Services, Jeevan Deep Building, Parliament Street, New Delhi.
7. Office of Controller General of Accounts, Mahalekha Niyantrak Bhawan, New Delhi,
8. NIC for uploading on Department’s website.
