Gratuity and Pension New Rule: The 7th Pay Commission is an important notice that has largely affected central government employees. If you happen to be employed by the government or are planning on entering the public sector anytime soon, this news is vital for you.
Recently, the Central Government seems to have revised the pension rules and the gratuity payment rules, which are just like before, but fail to comply with the rules; the penalty is serious after retirement.
Pension and Gratuity Rule Changes 2025
With the recent increase in dearness allowance (DA), the government has now updated Rule 8 of the CCS (Pension) Rules, 2021. Under the new provisions, should an employee indulge in serious misconduct or gross negligence during their service period, pension and gratuity benefits would be withheld or cancelled after retirement.
Although it applies to central government employees, this might also soon be implemented by the state governments.
Whom Will It Affect?
Such a strict warning is given by the government: Penalty measures will include deprivation of retirement benefits for employees found guilty of any fraud, corruption, or serious negligence. Important details you might wish to know:
- The authority to stop pension or gratuity to any employee based on proved misconduct has been bestowed upon Presidents, Secretaries, and Appointing Authorities.
- This power is vested with the Comptroller and Auditor General (CAG) with respect to employees retiring from the Audit & Accounts Department.
- Even if the employee is already receiving a pension or gratuity, it can be recovered if it is found that the employee has misbehaved.
How will the Government Implement New Rules?
- If an employee is subjected to disciplinary action because of employee service and before releasing retirement benefits, the authorities should be informed.
- Post-Retirement Reemployment provisions remain the same if a retired employee is given fresh employment.
- Recovery of funds- Will the government deduct or pay back all the pension and gratuity payments, if the fraud is established after retirement?
- Minimum Pension Guarantee-Even in cases of penalty, the pension will not fall below ₹9,000 per month as per Rule 44.
Expert Opinion: What Should Employees Do?
With these kinds of strict measures in place, government employees must be ethical and not negligent in their duties. For any measures that are final in nature, the Union Public Service Commission would be consulted before such action, so that the employee would have a fair review process.