Gratuity payment rule 2025: Rs 25 lakh maximum limit will ONLY apply to THESE central government employees under…, will not be eligible to…
GH News October 29, 2025 04:06 PM

The central government has announced that the maximum gratuity limit for its employees has been increased from Rs. 20 lakh to Rs. 25 lakh. But many people are wondering as to who will actually get this benefit? The government has now clarified that this new limit applies only to central government employees who are covered under the Central Civil Services Pension Rules 2021 and are part of the National Pension System (NPS).
Those who are not under these rules such as employees of banks port trusts the Reserve Bank of India (RBI) public sector undertakings (PSUs) autonomous bodies universities or state governments will not be eligible for the new gratuity limit. These organizations follow their own service and pension rules and the central department does not make decisions for them.
So only central government staff under the Civil Services Pension Rules will now get gratuity up to Rs. 25 lakh. Others should check with their own departments to know the rules that apply to them.
According to the Department of Pension and Pensioners’ Welfare (DoPPW) it has been receiving many queries and RTI applications asking whether the new gratuity rules under the Central Civil Services (Pension) Rules apply to employees working in banks port trusts the RBI PSUs autonomous bodies universities or state governments. The department clarified that these organisations are not covered under the CCS (Pension) Rules as they are governed by their own separate regulations.
The DoPPW is the main department responsible for creating policies related to pension and retirement benefits for central government civil employees who come under the CCS (Pension) Rules 2021 and the CCS (Payment of Gratuity under NPS) Rules 2021.
The government’s decision to raise the gratuity limit has come as good news for long-serving central government employees. The increased limit will provide better financial support at the time of retirement helping retirees enjoy greater comfort and security in their post-retirement life.