Clarification on eligibility for gratuity under NPS on resignation

Reference Rules: Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021.

Rule 22 - Eligibility for Retirement Gratuity:

A government servant is eligible for a retirement gratuity upon completing five years of qualifying service if they:

(i) Retire on superannuation or invalidation.

(ii) Retire or are retired in advance of superannuation.

(iii) Opt for a Special Voluntary Retirement Scheme as a surplus employee.

(iv) Are permitted to be absorbed in a corporation, company, or body owned/controlled/financed by the Central or State Government.

Rule 17 - Forfeiture of Service on Resignation:

(1) Resignation generally entails forfeiture of past service.

(2) Forfeiture does NOT occur if the resignation is a "technical resignation" submitted to take up another qualifying appointment under the Government.

Resignation for the purpose of Rule 32 also does not entail forfeiture.

Rule 32 - Benefit on Absorption:

A government servant absorbed in a government-owned/controlled corporation, company, or body is deemed to have retired and is eligible for a retirement gratuity.

Key Clarification (Point 3 in the document):

• Gratuity is payable only on retirement (as per Rule 22), absorption (Rule 32), or technical resignation (Rule 17(2)).
• Resignation (except for the two cases mentioned above) forfeits past service, and NO GRATUITY is payable.

Summary Conclusion:

According to these Office Memoranda, a central government servant under NPS is not eligible for a gratuity upon tendering a regular resignation, as it leads to forfeiture of past service. Gratuity is only payable upon superannuation, voluntary retirement, invalidation, or upon absorption into a government-owned/controlled entity (which is treated as a deemed retirement). A "technical resignation" to join another government post also preserves the service for gratuity calculation.