Thought for Today, 29 th June 2020

Life is a trip. The only problem is that it does not come with a map. We have to search our own routes to reach our destination.

Friday, July 12, 2013

Withholding of 10% gratuity from the retiring Central Government servants - clarification regarding.

            Department of Pension and Pensioner's welfare Office Memorandum date 11th July 2013


Subject: Withholding of 10% gratuity from the retiring Government servants -
              clarification regarding.

The undersigned is directed to refer to this Department's OM of even number dated the 19th
February 2013 on the above cited subject and to say that this Department is still receiving
representations from individuals and Pensioners Associations that Government Departments have
been withholding 10% of the amount of gratuity from retirees even when they had not been
provided any Government accommodation. This is in contravention of existing instructions.
2 The recovery and adjustment of Govt. dues from retirement gratuity is regulated under Rules
71 to 73 of the CCS (Pension) Rules, 1972. Rule (1) to (3) of Rule 72 ibid provide for recovery of
actual amount of Govt. dues in respect of Govt. accommodation from pay & allowances before
retirement and from Retirement Gratuity. Sub rule (5) of Rule 72 ibid stipulates that if, in any
particular case, it is not possible for the Directorate of Estates to determine the outstanding licence
fee, that Directorate shall inform the Head of Office that ten per cent of gratuity may be withheld
pending receipt of further information. Further, if no Government accommodation is allotted to a
Government servant, in accordance with Dte of Estate's OM NO.18011/5/1990-Pol-1I1 dated
12.10.2010, it is for the Administrative Ministry to issue an 'NDC".

3. As regards recovery in respect of 'Govt. dues' other than those pertaining to Govt.
accommodation, the Head of Office is required to complete assessment of such dues eight months
prior to the date of retirement [Rule 73(2)]. The actual amount of such dues and the dues which
come to notice subsequently and remain outstanding are to be adjusted against the amount of
retirement gratuity becoming payable to the Govt. servant on retirement.

4. It is, therefore, clear that there is no provision for withholding any part of gratuity at the
time of retirement for the purpose of recovery of outstanding government dues other than those
pertaining to government accommodation and the onus of timely collection of license fee is on the
Directorate of Estates. If the Directorate of Estate does not specifically inform the Administrative
Department of the outstanding dues and requests for withholding of 10% gratuity for the
outstanding license fee, Gratuity cannot be withheld on this account. The only other circumstance
under which gratuity can be withheld is in case of ongoing disciplinary proceedings against the
Government servant. Thus the Pay and Accounts Officer shall not withhold any gratuity unless
the Head of Office
(a) encloses instructions received from Directorate of Estate for withholding of 10%
gratuity for outstanding license fee or
(b) Informs of ongoing disciplinary proceedings.

These instructions are for strict compliance of all Administrative Ministriesl Departments.

5. A revised FORM 8 - form of letter to the Accounts Officer forwarding the pension papers
of Government servant is also enclosed. Formal amendment in the CCS(Pension) Rules for revised
Form 8 will be notified later. t1R~;:
(Tripti P.Ghosh)
Director (PP)
TEL: 24624802

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