This clarification aligns with the Ministry of Finance’s earlier notification (dated 24 January 2025) introducing the UPS for Central Government civil service recruits from 1 April 2025, offering a one-time option for existing NPS-covered employees to transition to the new scheme.

The gratuity benefits will be governed by the Central Civil Service (Payment of Gratuity under NPS) Rules, 2021.

EXTENSION OF BENEFIT OF RETIREMENT GRATUITY AND DEATH GRATUITY TO EMPLOYEES OPTING FOR UNIFIED PENSION SCHEME (UPS)

Ministry of Finance, Department of Financial Service vide its Notification No. FS-1/3/2023-PR dated 24.01.2025 had notified introduction of the Unified Pension Scheme (UPS) as an option under NPS for the recruits to the Central Government civil service w.e.f. 01.04.2025 giving one time option to the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme.

In view of the above, the Department of Pension and Pensioners’ Welfare vide its OM No. 57/01/2025-P&PW(B)/UPS/10498 dated 18.06.2025, has issued clarification that the Central Government employees opting for Unified Pension Scheme shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.

PIB

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