The central government has introduced a new regulation for its employees, resulting in the discontinuation of their pension and gratuity. Further details can be found below.

Modi government issues strict warning to central employees regarding their pension and gratuity

The Modi government has made changes to the rules related to pension and gratuity of employees, and has issued a warning to central employees that if they are negligent in their work, their pension and gratuity may be stopped after retirement.

Gratuity and Pension Rule changes

In March 2023, the government had announced DA and its arrears were given to employees from January 1. The government will announce another DA hike in September or October. However, if employees ignore the government’s warning, they may be deprived of pension and gratuity after retirement.

Instructions to stop pension and gratuity

The government has instructed that if an employee is negligent in their work, their pension and gratuity will be stopped after retirement. Currently, this order applies to central employees, but states may also implement it in the future.

Rule 8 of Rule 2021 changed

The government has changed Rule 8 of the CCS (Pension) Rules 2021, adding new provisions that state if central employees are found guilty of any serious crime or negligence during their service, their gratuity and pension will be stopped after retirement.

Who will take action

Those who were involved in the appointing authority of the retired employee and secretaries associated with concerned ministries or departments have been given the right to withhold gratuity or pension. The CAG has the right to withhold pension and gratuity after the retirement of guilty employees from the Audit and Accounts Department.

Know how the action will be taken

If any departmental or judicial action has been taken against employees during their service, information must be given to the concerned authorities. If an employee is re-appointed after retirement, the same rules will apply. If an employee has taken payment of pension and gratuity after retirement and is found guilty, the full or partial amount of pension or gratuity can be recovered from them. The authority can stop the pension or gratuity of the employee permanently or for some time.

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