E-Paper
7th Pay Commission: Govt changes rules of ex-gratia compensation payment to employees' family
7th Pay Commission: The family members of Central government employees are entitled to an ex-gratia lump sum compensation, the amount of which gets revised from time to time.
The Central government has modified the rules related to the payment of ex-gratia compensation to families of employees during the performance of official duty. The family members of Central government employees are entitled to ex-gratia lump sum compensation, the amount of which gets revised from time to time.
The payment of gratuity, GPF balance and Central Government Employees Group Insurance Scheme (CGEGIS) amount after the death of an employee are made in accordance with the nominations made by the government servant during service.
But the ex-gratia compensation is made to the member of the family who is eligible for extraordinary family pension under the CCS (Extraordinary Pension) Rules, 1939 since provision for a nominee didn’t exist before.
Also Read | Gujarat hikes dearness allowance for state govt employees by 11%
The department of pension and pensioners welfare examined the matter in consultation with the finance ministry and decided that payment of ex-gratia compensation may be made to a member or members of the family in whose favour a nomination is made by the employee during service.
If an employee fails to make anyone a nominee, the ex gratia amount will be divided equally among all eligible family members, according to an office memorandum published by the department of pension and pensioners.
“Since the ex-gratia lump sum payment is payable to the family only, no nomination shall be made in favour of a person who is not a member of the family, even where the Government servant has no family,” the memo said.
“If no nomination has been made or the nomination made by the Government servant does not subsist, the ex-gratia lump sum compensation will be shared equally by all eligible family members, as in the case of Gratuity, in accordance with Rule 51 of the CCS (Pension) Rules,” it added.
The office memorandum was issued on September 30, 2021. The latest instructions will be followed in case the employee dies on or after the date of issue of the memo. Cases of payment of ex-gratia compensation on government employee’s death before the date of issue of the office memo will be dealt with as per the previous rules.
