Central government employees under the Unified Pension Scheme will now receive gratuity benefits as per the Old Pension Scheme. The decision aims to address concerns over unequal pension benefits and will impact 23 lakh employees nationwide
New Delhi: The central government employees who have opted for the Unified Pension Scheme(UPS) will now get the gratuity benefit under the Old Pension Scheme(OPS) too. The Department of Pension and Pensioners' Welfare (DoPPW), under the Personnel Ministry, issued an order on Wednesday stating that those who have opted for the UPS will be provided with gratuity under the OPS even if they retire or die while in service.
Those who have lost their jobs due to disability or ineligibility will also be eligible for gratuity under the OPS. Union Personnel Minister Jitendra Singh said that the decision was taken in consideration of the demand of employees for equality in retirement benefits.
Addressing a long-pending demand, Singh said the move ensures parity in retirement benefits and reflects the government’s broader aim to strengthen social security for employees under the National Pension System (NPS).
He announced the change during a press conference detailing the Ministry of Personnel’s reforms over the past 11 years. Under the new order, employees opting for UPS will receive gratuity benefits as per the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021.
The Department of Pension and Pensioners’ Welfare (DoPPW) issued an order giving employees the option to revert to OPS benefits in case of death, invalidation, or disability during service. DoPPW Secretary V Srinivas called the move “progressive” and said it clarifies multiple concerns raised by employees.
The order was welcomed by the President of the All India NPS Employees Federation Manjeet Singh Patel who said it was a much-needed historic decision.
A separate order clarified that employees covered under UPS would also be eligible for gratuity benefits up to Rs 25 lakh, aligning them with NPS pensioners. The finance ministry had earlier notified UPS as an option under NPS for new recruits from April 1, 2025, with a one-time opportunity for current employees to opt in.
Both orders were unveiled at the press conference held by Jitendra Singh.
Published: 19 Jun 2025, 10:02 am IST
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