7th Pay Commission: Know the new rules for payment of ex-gratia lump sum compensation for central government employees

7th Pay Commission: The Department of Pension and Pensioners’ Welfare, Ministry of Personnel, Public Grievances and Pensions, Government of India has issued a circular on 30th September, highlighting certain changes in the payment of ex-gratia lump sum compensation to families. central government employees who died during his tenure. As per the CCS (Extraordinary Pension) Rules, 1939, the families of Central Government employees who died before retirement are entitled to ex-gratia lump sum compensation.

In an office memorandum dated 30 September, the government has announced that ex-gratia payments will be made to the member nominated by the employees during their service. The decision to change the policy was taken after in-depth consultations with the Department of Expenditure, Ministry of Finance.

This amount will be worked out from payment of gratuity, GPF balance and Central Government Employees Group Insurance Scheme (CGEGIS). Earlier, the provision mentioned that the payment would be made to the family member who is eligible under the 1939 rule, and there was no protocol to choose the nominee.

“On the death of a Government servant in the performance of actual duty, ex-gratia may be paid to the member or members of the family in whose favor the nomination is made by the Government servant during the course of service,” the memorandum read.

The memorandum also stated that certain changes were made in the Common Enrollment Form in Form 1 attached to the CCS (Pension) Rules, 1972, including introduction of nomination of a family member eligible for ex-gratia compensation. Also, since the compensation is limited to the family members only, no nomination will be given viability outside the family. The circular also mentioned that if the employee fails to nominate any, the amount of compensation will be divided equally among all the family members.

The memorandum, issued on September 30, laid down the changes made in ex-gratia compensation for families of government employees, which would be applicable to cases after the date of issue. However, all cases before 30 September will be dealt with as per the previous rules.

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