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India Extends ₹25 Lakh Gratuity Benefits to UPS Employees

The Ministry of Personnel’s order aligns retirement and death gratuity eligibility under UPS with NPS pensioners to ensure equal social security.

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Overview

  • On June 18, the Department of Pension and Pensioners’ Welfare issued orders granting retirement and death gratuity under Central Civil Services Rules, 2021 to all central government staff covered by the Unified Pension Scheme.
  • The orders allow UPS employees to choose benefits under the Old Pension Scheme in the event of death in service or discharge on grounds of invalidation or disability.
  • With this change, both National Pension System and UPS pensioners become eligible for up to ₹25 lakh in gratuity on retirement or demise.
  • Union Minister Jitendra Singh said the move addresses a long-standing demand of government employees and reflects a commitment to inclusive social security.
  • The announcement builds on wider governance reforms by the Ministry of Personnel, including the introduction of digital life certificates for pensioners and the repeal of over 1,600 outdated rules.