The regulations for paying ex-gratia lump-sum compensation to the families of Central Government employees who die in the line of duty have been changed by the Indian Government under the Ministry of Personnel Public Grievances and Pensions and Department of Pension and Pensioners Welfare. Ex-gratia lump sum compensation is payable to the families of Central Civil Government employees who die before retirement while doing their legitimate official responsibilities under a variety of conditions. From time to time, the amount of ex-gratia lump-sum settlement has been changed.

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.

What if no nomination is made

The DoPPW said that 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.

Nomination outside family not allowed

The DoPPW also said that no nomination can be made in favor of a person who is not a member of the family, even where the Government servant 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 favor of a person who is not a member of the family, even where the Government servant has no family,” the O.M. said.

Why new rule

After the 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.

However, the existing rules did not specify the member of the family to whom such exgratia lump sum compensation is payable. Hence, till now this payment has been made to the member of the family who is eligible for extraordinary family pension under the CCS (Extraordinary Pension) Rules, 1939.

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