Good News! Retirement Gratuity and Death Gratuity Extended to Railway Employees Under Unified Pension Scheme
New Delhi: Ministry of Railways has confirmed that employees who opt for the Unified Pension Scheme (UPS) will now be eligible for retirement gratuity and death gratuity benefits. The update is released for Railway Employees vide Railway Board Order No. 66/2025, issued on July 7, 2025.
According to the Railway Board letter vide letter No. 2012/F(E)IlI/1(1)/4 New Delhi, dated: 07.07.2025, “Ministry of Finance, Department of Financial Services, has vide Gazette Notification No. FX-1/3/2024-PR dated 24th January, 2025 introduced the Unified Pension Scheme (UPS) as an option under the National Pension System (NPS) for the recruits to the Central Government civil services w.e.f 01.04.2025 giving one time option the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme. The same has been adopted on Railways vide Board’s letter number F(E)III/2025/UPS/1 dated 18.03.2025.”
As per the letter, Railway Board had already adopted Unified Pension scheme via its earlier communication dated March 18, 2025. Now, as per the latest circular, it has been clarified that Railway employees under UPS will receive retirement and death gratuity benefits like other Railway Employees who are covered under the National Pension System in terms of Board’s letter No. 2012/F(E)III/1(1)/4 dated 05.09.2016.
Also Read:- Good News for Railway Employees! Railway Board implements Sanctioning of leave through Leave Management Module of HRMS Portal
The letter is addressed to the General Managers/Principal Financial Advisors, All Zonal Railways/Production Units etc, DGs of RDSO and NAIR.
You can download the official order letter below.
