Calculation of death gratuity for Central government employees
No. 1/15/2020-P& PW (E)
Government of India
Ministry of Personnel Pension & Public Grievance
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi-110003
Dated December 9, 2021
Subject: Determination of Pay/Emolument for calculation of family pension and death gratuity where a Government servant dies during currency of a penalty – regarding
The undersigned is directed to say that 1n accordance with Rule 54(14)(c) of CCS Pension Rules, 1972, the pay for the purpose of family pension means the emoluments as specified in Rule 33 of the CCS (Pension) Rules, 1972 or the average emoluments as referred to in Rule 34 of the CCS (Pension) Rules, 1972, if the emoluments of the deceased Government servant have been reduced during the last ten months of his service otherwise than as penalty. Similar provision exists in Rule 50(5) for calculation of retirement/death gratuity.
2. As per Rule 33, the expression ‘emoluments’ means basic pay as defined in Rule 9(21)(a)(1) of the Fundamental Rules which a Government servant was receiving immediately before his retirement or on the date of his death. As per Rule 34, average emoluments are determined with reference to the emoluments drawn by a Government servant during the last ten months of his service.
3. References have been received in this Department seeking advice as to how family pension and death gratuity in respect of a Government servant are to be calculated if a Government servant dies during the currency of a penalty, which reduces the pay of the Government servant for a specified period only, as in such cases the impact of the penalty is limited to the period specified in the order of penalty and the Government servant regains his pay and increments after the period of penalty is over. Clarifications have been sought whether, in such cases, family pension and gratuity would be calculated based on the reduced pay, which the Government servant was actually drawing on the date of death or on the pay which the he would have drawn if such a penalty had not been imposed on him.
4. The matter has been examined in consultation with Department of Expenditure. The manner in which the pay of a Government servant is to be regulated on imposition of penalties of reduction to a lower stage, withholding of increment and reduction to a lower time scale, has been explained in Department of Personnel & Training’s OM No. 11012/15/2016-Estt A-III dated 18th June, 2019. These instructions also bring out the penalties on imposition of which there is no impact on the pay after the expiry of the period of penalty and also the manner in which notional pay of a Government servant is to be fixed during the currency of such penalties.
5. It is observed that determination of family pension and death gratuity based on actual pay drawn in case of death during the currency of a penalty referred to in para 3 above would result in reduced amount of death gratuity and also reduced family pension to the widow/family. This may not be the intention of the disciplinary authority while imposing that penalty. Therefore, in cases where the intention of the disciplinary authority was to restrict the impact of the penalty on the Government servant for a specified period only, determination of family pension and death gratuity on the basis of the reduced pay during the currency of such penalty would result in an unintended hardship to the family of the Government servant, who dies during the currency of such penalty.
6. It has, accordingly, been decided that in cases where a Government servant dies during the currency of a penalty on expiry of which he would have regained the same pay which he would have drawn if the penalty had not been imposed on him, the family pension and death gratuity in respect of such Government servant shall be determined based on the notional pay which he would have been entitled to on the date of death and such notional pay may be treated as emoluments for this purpose.
7. These instructions shall be applicable with immediate effect and the past cases shall not be re-opened. However, the cases where the death of a Government servant has occurred before the issue of these instructions but family pension and death gratuity has not been determined so far may also be decided in accordance with these instructions.
8. Necessary amendment in the CCS (Pension) Rules, 1972 shall be made separately.
9. This OM is issued with the concurrence of Ministry of Finance, Department of Expenditure vide their ID No. 1(13)//EV/2021 dated 12.08.2021.
10. In its application to persons belonging to Indian Audit and Accounts Department, these orders are issued under Article 148(5) of the Constitution and after consultation with the Comptroller and Auditor General of India vide their यू.ओ.संख्या-216-स्टाफ हक.(नियम)/ए.आर./09-2019 दिनांक 23.09.2021.
11. The Administrative Divisions of all Ministries/Departments and attached/subordinate offices are requested to bring the contents of these instructions to the notice of all concerned for compliance.
Deputy Secretary to the Government of India