New Delhi: Many government employees often wonder whether it is possible to receive gratuity more than once during their career. This question usually comes up in cases where an individual retires from military service, receives gratuity, and later takes up a civil post under the Central or state government. Over the years, such situations have led to confusion among employees.
Gratuity Rules Clarified For Ex-Servicemen Joining Civil Services
To clear long-standing confusion around gratuity benefits, the Department of Pension and Pensioners’ Welfare has issued a fresh clarification. The move is aimed at explaining gratuity entitlement under the National Pension System, particularly for individuals who served in the military and later took up civil service roles under the Centre or state governments. The clarification is expected to help employees better understand their retirement benefits and avoid misinterpretation of existing rules.
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Government Explains When Gratuity Is Payable After Rejoining Service
The Department of Pension and Pensioners’ Welfare (DoPPW) has cited Rule 4A of the Central Civil Services (Payment of Gratuity under NPS) Amendment Rules, 2025, and clearly spelt out the conditions.
In an Office Memorandum issued on December 26, 2025, the department explained whether gratuity received for earlier military service affects an employee’s eligibility for gratuity after being re-employed in a civil government post. The clarification helps employees understand how past service is treated while calculating retirement benefits under the NPS framework.
When You Cannot Claim Gratuity Again After Re-Employment
According to the Office Memorandum, a re-employed government employee will not be eligible for a second gratuity if they have already received gratuity for their earlier service. This includes cases where the employee has been paid superannuation gratuity, retiring gratuity, compulsory retirement gratuity, or compassionate gratuity following dismissal or removal from service.
In such situations, the gratuity paid earlier is treated as final, and no fresh gratuity will be admissible for the subsequent period of government service.
How Past Service Is Counted For NPS Gratuity
The Department of Pension and Pensioners’ Welfare (DoPPW) has also issued clear instructions on how past service will be counted while calculating gratuity for Central government employees covered under the NPS. These guidelines aim to ensure uniformity and remove doubts related to the treatment of earlier service periods while determining gratuity eligibility.
Cap On Gratuity When Paid Separately For State And Central Service
As per the instructions, an employee who receives separate gratuity for service under a state government and later under the Central government can do so only within a fixed limit. The total gratuity paid for both periods of service must not exceed the amount that would have been admissible if the employee had continued in government service without a break and retired on the same pay drawn at the time of retirement from the later service.
In simple terms, while separate gratuity payments may be allowed, the overall payout is capped to ensure it does not go beyond what the employee would have received after a single continuous government service.
Civil Service Gratuity Won’t Be Reduced After Military Service
The Department of Pension and Pensioners’ Welfare (DoPPW) said it has received several queries regarding whether gratuity for civil service is subject to any limit for government employees who are re-employed after completing military service and have already received gratuity for that period.
Clarifying the issue, the department stated that in such cases, the gratuity payable for service rendered after re-employment in a civil post will not be restricted or capped based on the gratuity drawn for earlier military service. In simple terms, civil service gratuity will be calculated independently and will not be affected by the gratuity received for military service.
