For years, government employees, especially those with mixed service records, have been confused about one key question: Can a person receive gratuity more than once during their career? The doubt has
been common among those who served in the armed forces, retired with gratuity, and were later re-employed in civil services under the Centre or states.
To end this uncertainty, the Union government has now issued clear guidelines spelling out when a second gratuity is allowed and when it is not.
The clarification comes amid repeated queries from departments and employees over gratuity eligibility under the National Pension System (NPS), especially for re-employed personnel.
What Has The Government Clarified?
The Department of Pension and Pensioners’ Welfare, or Department of Pension and Pensioners’ Welfare, has issued a detailed explanation to bring uniformity in gratuity payments. The focus is on employees who had prior service, including military service, before joining civil government posts.
The clarification refers to Rule 4A of the Central Civil Services (Payment of Gratuity under NPS) Amendment Rules, 2025. An official memorandum issued on December 26 explains whether a government employee who has already received gratuity for earlier service can claim it again after rejoining government service.
Officials say the aim is to avoid conflicting interpretations and future disputes.
When A Second Gratuity Is Not Allowed
According to the government’s clarification, a second gratuity will not be paid if an employee has already received a gratuity for previous service before reappointment.
This applies if the employee has received any of the following for earlier service: Superannuation gratuity, retirement gratuity, compulsory retirement gratuity, or compassionate gratuity paid after removal or dismissal on humanitarian grounds.
In such cases, the earlier gratuity is treated as final. Even if the employee later completes another spell of government service, they will not be eligible for a fresh gratuity for the new tenure.
This rule is particularly relevant for ex-servicemen who received gratuity after military retirement and later joined civil government roles.
The Key Exception Employees Should Know
The government has also carved out an important exception. Employees who earlier worked in a public sector undertaking (PSU) or an autonomous body, and later joined Central or State government service with proper permission, can receive gratuity again.
In such cases, the gratuity received for PSU or autonomous body service does not disqualify them from receiving gratuity for their later government service. Both gratuities are treated as separate entitlements.
This exception is significant for professionals who moved from PSUs or autonomous institutions into government roles after formal approval.
What If Someone Has Served Both State And Central Governments?
The clarification also addresses employees who have served under both state and Central governments during their careers.
If an employee qualifies for gratuity from both services, there is still a ceiling on the total amount payable. The combined gratuity from State and Central government service cannot exceed the maximum gratuity amount that would have been admissible had the entire service been under one government.
In other words, while gratuity from both services may be allowed, the total payout cannot cross the prescribed upper limit.
Why This Clarification Matters
This decision is expected to benefit defence personnel, re-employed civil servants, and officers with complex service histories. It brings consistency to gratuity payments and prevents dual benefits beyond permissible limits.
More importantly, it aligns gratuity rules under the NPS framework with existing pension regulations, reducing scope for confusion across departments.
For employees nearing retirement, or those considering re-employment after retirement, the new guidelines provide much-needed clarity on what financial benefits they can realistically expect.
What To Conclude
The Centre’s latest clarification makes one thing clear: while gratuity can be paid more than once in specific circumstances, it is not automatic. Eligibility depends on the nature of previous service, the type of gratuity already received, and whether the move into government service followed approved channels.
For government employees with mixed service records, understanding these rules early can help avoid surprises at retirement.
