7th Pay Commission: Know About Important Change Made In Rule For Paying Ex Gratia Lump Sum Compensation

The salary to Central Government Employees is paid in accordance with the 7th Pay Commission recommendations.

Representative Photo

New Delhi: The Union Government recently modified the rules for payment of ex gratia lump sum compensation to family of Centre’s Employees who die in performance of official duty. 

As per the new rules, the families of Central Civil Government servants, who die before retirement during performance of their bonafide official duties under various circumstances, are entitled to payment of ex gratia lump sum compensation. 

The compensation amount has been revised from time to time.

Now, the government has decided that the payment of the ex gratia lump sum compensation will be made to a member, or members of the family, who have been listed as the nominee by the Government servant during service.

“On death of a Government servant, payment of other lump sum amounts, such as death gratuity, GPF balance and CGEGIS amount, is made in accordance with the nominations made by the Government servant during service. Accordingly, it has been decided that, on death of a Government servant in the performance of bona fide duty also, payment of ex gratia lump sum compensation may be made to a member or members of the family in whose favour a nomination is made by the Government servant during service,” the Department of Pension and Pensioners Welfare (DoPPW) stated in an Office Memorandum (O.M.). 

The Common Nomination Form in Form 1 appended to the CCS (Pension) Rules, 1972 was amended to include the nomination for the ex gratia lump sum payment.

What Happens In Case Of No Nomination?

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, the DoPPW stated.

No Nomination Outside Family

Meanwhile, it was informed that no nomination can be made in favour of a person who is not a member of the family, even in the case of a Government servant who has no family.

“The nomination for ex gratia lump sum payment shall be subject to the provisions as applicable in the case of gratuity under Rule 53 of the CCS (Pension) Rules, 1972. 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 Office Memorandum states.

More Details

The salary to Central Government Employees is paid in accordance with the 7th Pay Commission recommendations.

After a Government servant dies, the payment of other lump sum amounts, such as death gratuity, GPF balance and CGEGIS amount, is made in accordance with the nominations made by the Government servant during service.

However, the prior rules did not specify the member of the family to whom such ex gratia lump sum compensation is payable. So, this payment was made to the member of the family who is deemed eligible for extraordinary family pension under the CCS (Extraordinary Pension) Rules, 1939.