Gratuity Rules: Central government employees should know about this important fact about Gratuity. The gratuity income of a central government employee can be withheld at the time of his/her retirement under some special circumstances. Here is what you need to know.  

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The retiring government employees should be paid immediately on production of 'No Demand Certificate' under the Central Civil Services (Pension) Rules 1972. The Directorate of Estates has to ensure that the retired employee gets the certificate within 14 days.  

However, there are some special circumstances under which the central government department may withhold the gratuity income of an employee.  

Know under which circumstances could the gratuity income be withheld? 

1.      100 per cent gratuity can be withheld on retirement if any disciplinary/judicial proceedings are instituted against a government employee before his retirement. The gratuity in such cases will be withheld till the conclusion of the departmental/judicial proceedings and issue of final orders thereon. 

2.      The Administrative Department/Accounts Officer receives instructions from Directorate of Estates to withhold 10 per cent gratuity for outstanding license fee/damages in respect of the Government accommodation. 

The President of India reserves the right to withhold pension or gratuity or both in full/part or withdrawing in full/part, whether permanently or for a specified period, in case an employee is found guilty in a departmental or judicial proceeding  for grave misconduct or negligence during his/her period or service, including service rendered upon re-employment after retirement. The President may also order recovery from a pension or gratuity for the pecuniary loss caused to the Government. 

When the Government servant is exonerated fully after the departmental/judicial proceedings, gratuity shall be paid after issue of the final orders. When the Government servant/pensioner is found guilty, Government will issue orders for regulation of gratuity. 

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There are separate rules regarding pension and gratuity of Railway employees and Defense personnel.