Enhancement of maximum limit of gratuity of employees governed by Defined Contributory Pension Scheme (NPS)
Fin (Pen) A(3)-1/2019
Government of Himachal Pradesh
Finance(Pension) Department – Shimla-171002
Dated: Shimla-2, the 16th March. 2022
OFFICE MEMORANDUM
Subject: Enhancement of maximum limit of gratuity of employees governed by Defined Contributory Pension Scheme (National Pension System).
1. The undersigned is directed to say that the benefit of Retirement Gratuity and Death Gratuity was extended to regular Government employees appointed on or after 15.05.2003 and governed by the Contributory Pension Scheme (National Pension System) vide Office Memorandum No. Fin(Pen)A(3)-1/96 dated 18.09.2017 from a prospective effect i.e. from the date of publication of the said instructions in the Rajpatra. The instructions dated 18.09.2017 above, were published in the Govt. Rajpatra on 22.09.2017, therefore, the said instructions had come into effect from 22.09.2017. Under the said instructions. Retirement Gratuity and Death Gratuity was allowed with maximum limit of Rs. 10 Lakh, at par with employees covered under the CCS (Pension) Rules, 1972.
2. Later in partial modification of para-5 of the OM No.Fin(Pen)A(3)- 1/96, dated 18.09.2017. the benefit of Retirement Gratuity and Death Gratuity was extended to the regular employees governed by Defined Contributory Pension Scheme (NPS) from retrospective date i.e. w.e.f. 15.05.2003 vide OM No. Fin(Pen)A(3)-1/20 19 dated 08.01.2021.
3. Now, after careful consideration of the matter. the Governor. Himachal Pradesh is pleased to enhance the maximum limit of Retirement Gratuity and Death Gratuity from Rs.10 Lakh to Rs.20 Lakh w.e.f. 01.01.2016 in respect of employees governed by the Defined Contributory Pension Scheme (National Pension System) as is applicable to employees covered under the CCS (Pension) Rules, 1972 subject to maximum of 16 1/2 times of the emoluments (i.e. 33 years qualifying service). The para-2 of the OM No. Fin(Pen)A(3)-1196 dated 18th September. 2017. whereby. the maximum ceiling of Retirement Gratuity and Death Gratuity was fixed at 12 1/2 times of the emoluments (i.e. 25 years qualifying service) shall stand modified retrospectively, from the date of application of these orders i.e., 01.01.2016.
By Order,
Prabodh Saxena, IAS
Addl. chief Secretary (Finance) to the
Govt. Of Himachal Pradesh Shimla -2