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Chapter 6 Retirement, Gratuity and Pension

Chapter 6 Retirement, Gratuity and Pension
33. Compulsory retirement :
(1) Any civil employee who has completed the age of fifty-eight years or completed the tenure as
referred to in Section 17 shall ipso facto retire from the civil service.
(2) Even the civil employees who are incumbent in the civil  service on the extension of their tenure after completion of the thirty-year service period, prior to the commencement of Sub- section (1), may hold office in the civil service until they complete the age of Fifty Eight years.
Provided that, in the case of the employees whose tenure of service is specified pursuant to Section 17, that Section shall be  applicable.
(3) For purposes of this Section, the age of a civil employee shall be calculated on the basis of the age to be set from the birth  day or year inscribed in the certificate of educational institute submitted by him/her at the time of joining the service or the age to be set from the birth day or year inscribed in the citizenship
certificate or the age to be set from the birth day or year inscribed in the sheet roll/personal details filled up by him/her at the time of joining the service, at whichever age he/she gets retired earlier.
? 34. Power to award retirement : Government of Nepal may, in the following circumstances, retire any civil employee from the service:
(a) If any civil employee is proved to have provided or attempted  to provide secret governmental documents, deeds or information under his/her custody or obtained by him/her in any manner to any unauthorized person or body,
(b) If any civil employee is proved to have committed an irresponsible conduct contrary to the dignity of his/her post, by maintaining undesirable contact with any foreign country, organization or citizen contrary to the national interests.
▲ 34A. Special provision in respect of incapacitated employee : If it is certified by the medical board constituted by Government of Nepal that any civil employee is unable to serve regularly owing to a physical or mental disease, Government of Nepal may retire that employee, by adding a service period of Seven years in maximum to
his/her service period.

? 35. Voluntary retirement :

(1) Any civil employee who is eligible to receive pension and has completed the age limit of Fifty years may
voluntarily retire from the service on such terms and within such period as set forth and specified in a Notification published by  Government of Nepal in the Nepal Gazette. A service period not exceeding Seven years shall be added and the total service period shall be fixed for pension in such a manner that the age does not  cross Sixty years in the case of an employee who joined the civil service before the 21st Kartik of the year 2049(6 November 1992)
and the age does not cross Fifty Eight years in the case of an employee who joins the civil service on or after that date, out of the employees who so retire voluntarily.
Provided that, in the case of the employee who has become redundant because of non-adjustment in position or who is holding a post not necessary for Government of Nepal, separate facilities and terms may be specified and application for voluntary retirement may be invited by a Notification in the Nepal Gazette.
(2) Notwithstanding anything contained in Sub-section (1), if an employee who is eligible to have pension and has completed the age limit of fifty years intends to have voluntary retirement, he/she
may be retired by promoting him/her to one level higher post if he/she has served as per Sub-section (3) of Section 37 in the event that he/she is entitled to promotion to one level higher post pursuant
to Section 20A. of this Act.
36. Gratuity : (1) If any civil employee, who has served for Five years or more but has not completed the period required for pension, retires or leaves service by getting resignation accepted or is removed from the post without being disqualified for government service in the future, he/she shall receive gratuity at the following
rate:
(a) In the case of the civil employee who has served from Five years to Ten years, Half the last
month’s salary for each year of his/her service,
(b) In the case of a civil employee who has served for more than Ten years up to Fifteen years, the
last One month’s salary for each year of his/her service,
(c) In the case of a civil employee who has served for more than Fifteen years but less than Twenty
years, the last One and Half month’s salary for each year of his service.
(2) Notwithstanding anything contained in Sub-section (1), no gratuity shall be paid to any civil employee who is proved to have lied about citizenship or age or qualification with the intention of entering into or continuing to hold the government service.
37. Pension : (1) A civil employee who has been in government service for a period of Twenty years or more shall be entitled to a monthly pension at the following rate:
Total year of service X amount of the last salary 50
Provided that:
(1) No civil employee who has been dismissed from the service with being disqualified for
government service in the future shall be entitled to the pension pursuant to this Section.
(2) No pension shall be paid to any civil employee who is proved to have lied about citizenship or
age or qualification with the intention of entering into or continuing to hold government
service.
• (1a) Notwithstanding anything contained in Sub-section (1), in the case of not obtaining the pension by the service period due to compulsory retirement to the employees appointed in a class or post
as maximum age of Forty years and appointed pursuant to Sub- section (2) of Section 10, pension shall be provided by adding up to two years in service period to such employee .
Provided that, this provision shall not be applicable to the employees who retired before the commencement of this sub- section.
(2) Notwithstanding anything contained in Sub-section (1), the minimum amount of pension shall not be less than half the amount of basic figure of salary of the incumbent civil employee of the same post ▲ and the maximum amount thereof shall be more than the basic scale of salary of the incumbent civil employee of the
same post.
? (3) If any civil employee who has been in service in the civil service since 21 Kartik 2049 (6 November 1992) ago has already completed the service period of thirty years, he/she may retire from service voluntarily. The total service period of the civil employee who has so retired voluntarily from service or who has ipso facto
retired pursuant to Section 33 owing to the completion of 58 years of age upon having been in service in the civil service since 21  Kartik 2049 (6 November 1992) ago shall be set by adding such remaining period as required for him/her to complete sixty years of age.
? (4) If any employee who has completed a service period of fifteen years dies, a maximum period of Five years shall be added to his/her service period, and his/her family shall be allowed to receive either pension or gratuity, whichever that family chooses.
(5) If any person who is receiving pension on account of his/her earlier service in any government post is appointed to the civil post later, he/she shall be entitled to pension pursuantt  this  Section, with the addition of the period of his/her earlier service to that of his/her subsequent service.
38. Increment in pension : Where the salary of the incumbent civil employee is increased, two-third amount of the increment in the
basic figure of salary shall also be added to the amount of pension of
the retired civil employee of the same post.
۩ Provided that, this provision shall not be applicable to the
civil employee entitled to pension pursuant to Section 39B.
39. Family pension and gratuity : (1) If any civil employee dies
while in service or prior to completion of seven years after he/she
started to receive pension, a gratuity or pension as provided for in
Section 36 or 37 shall be provided to his/her family or minor brother
or unmarried sister.
Provided that, in the case of pension, such pension shall not
be available for more than Seven years. No pension shall be
provided to the family of the civil employee, who died prior to
completion of Seven years after he/she started to receive pension,
after completion of Seven years.
(2) Notwithstanding anything contained in Sub-section (1), if
the recipient of such pension is a minor, he/she shall be entitled to
such pension until he/she attends majority.
(3) The widower husband or widow wife of a civil employee
shall be entitled, for life, to half the amount of pension receivable by
such employee from the date of expiration of the period during
which such widower husband or widow wife is entitled to family
pension pursuant to Sub-section (1) by reason of the death of her
husband or his wife while in service or prior to completion of Seven
years after he/she started to receive pension and from the date of
death of such employee where such widower husband or widow wife
is not entitled to such family pension or where his wife or her
husband dies after completion of seven years after he/she started to
receive pension.
۩ Provided that, if such widower husband or widow wife
concludes another marriage, he or she shall not be entitled to this
kind of pension facility.
• (3a) Notwithstanding anything contained in Sub-section (3),
if the pension receiver widower husband or widow wife dies or
he/she marries with other, such pension amount shall be provided as
prescribed to minor children until they attain majority.
(4) Where the salary of incumbent civil employee is
increased, the two-thirds of the total amount increased in the figure
of basic salary shall also be added to the amount of family pension
of the person receiving family pension pursuant to sub-sections (1),
(2) and (3).
(5) If any employee dies prior to receiving any amount to
which that employee is entitled under this Act, such amount shall be
paid to the person from amongst his/her family members who is held
to be entitled to the gratuity or pension of that employee pursuant to
this Act.
(6) In providing gratuity or pension, if the deceased civil
employee has nominated any member of his/her family or his/her
minor brother or unmarried sister, gratuity or pension shall be
provided to such person, and if, for any reason, gratuity or pension
cannot be provided to such person or if nobody has been nominated,
it shall be provided to such person from amongst the members of
his/her family as may be deemed appropriate by Government of
Nepal.
▲ 39A. Pension and gratuity of disappeared employee : (1) If any
civil employee who has served in the civil service has disappeared
and whose whereabouts have not been traced until the prescribed
period whether he/she is dead or alive, the amount of gratuity or
pension to which such employee is entitled pursuant to Section 36 or
37 shall be provided to his/her family.
(2) Notwithstanding anything contained in Sub-section (1),
his/her family shall be provided with the family pension equal to the
full amount of pension for up to Seven years if he/she who is
entitled to pension pursuant to Section 37 disappears prior to
receiving pension and for up to the period remaining to complete
Seven years if he/she disappears after starting to receive pension,
and after that period, his/her wife or husband shall be provided with
family pension equal to half the amount of pension for life.
(3) If the employee disappeared is traced subsequently, the
gratuity as referred to in Section 36, if not paid yet, or the amount of
pension receivable under Section 37 shall be provided to him/herself
from the date on which he/she claims for the same.
Provided that, the person traced subsequently shall not be
entitled to claim such amount of gratuity, pension or family pension
as has already been paid pursuant to Sub-section (1) or (2).
• 39B. Special provisions relating to gratuity and pension : (1)
Government of Nepal shall set up a separate gratuity and pension
fund for purposes of providing gratuity and pension to civil
employees appointed after the date of Notification in Nepal Gazette.
An amount at the rate of at least Ten per cent of the monthly salary
of such employees shall be deducted, and Government of Nepal
shall, adding the amount equal to Ten per cent of the monthly salary
to such amount, deposit the total amount in that fund.
(2) The gratuity and pension related provisions contained in
Sub-section (1a) of Section 32, Section 34A., 35, 36,37, 38, 39 and
39A. shall not be applicable in the case of the civil employees to be
appointed after the publication of notice pursuant to Sub-section (1).
(3) Government of Nepal shall provide the amount equivalent
to deducted monthly salary pursuant to Sub-section (1) at the time of
payment of salary to the employee.
(4) Notwithstanding anything contained in Sub-section (3), a
civil employee who has been dismissed from the service with being
disqualified for government service in the future pursuant to Sub-
clause (2) of Clause (b) of Section 59 shall be entitled to receive a
lump sum of the total amount deducted from his/her salary to that
fund and interest as well as profit accrued therein and therefrom.
(5) Other provisions relating to the management and
operation of the amounts to be deposited in the gratuity and pension
fund set up pursuant to Sub-section (1), procedures for the deduction
of funds, payment of fund deducted amounts for purposes of gratuity
and pension and fund deductions shall be as prescribed.
• 39C. Special provision of family pension : (1) Notwithstanding
anything contained elsewhere in this Act, if any civil employee in
the course of duties specified by the government for the work
performance dies due to insurgency and his/her service period is less
than Twenty years, the pension as per this Act shall be provided to
the husband or wife by adding remaining service period.
(2) The person receiving pension pursuant to Sub-section (1)
shall not receive family pension or gratuity pursuant to Section 39.
(3) If person receiving pension as per this Section marries
with other, he/she shall not receive such pension.
(4) While increasing the salary of the civil employee, Two
third amount of the increased salary shall be added to the person
receiving the family pension.
(5) If the person receiving pension as per this Section dies or
he/she marries with other, such pension amount shall be provided to
minor son, daughter, if any, of the deceased employee until they
attain majority.
• 39D Special economic facility : If a civil employee dies while in
service, his/her near heir shall be provided with a lump sum of One
Hundred Fifty Thousand Rupees.
40. Reference of salary : (1) Wherever in this Chapter and in Chapter
5, a reference of salary is made, it shall mean the concerned civil
employee’s salary amount (including salary increment) for the time
being.
(2) For purposes of Sections 36 and 37, the term “last salary”
shall mean the concerned employee’s salary at the time of his/her
retirement, and if any civil employee has been on extra-ordinary
leave or under suspension at the time of such retirement, the amount
of full salary shall be computed even for such period.
? 40A. Provisions relating to insurance facility : (1) The Government
of Nepal shall establish a fixed term (Sabadhik) life insurance fund
for the civil employee insurance.
(2) A sum of Two Hundred Rupees shall be deducted from the
monthly salary of each civil employee and deposited in the fund
pursuant to Sub-section (1), and the Government of Nepal shall add
the amount equal thereto and make the Twenty year term life
insurance for the insured sum of One Hundred Thousand Rupees.
From the amounts deposited in that insurance fund, the insured sum
and bonus shall be paid to the employee at the time of his/her
retirement.
(3) If any civil employee who has made deduction pursuant to
Sub-section (2) dies before the completion of Twenty years of
service period, an amount of One Hundred Thousand Rupees shall
be provided to his/her family. The following amount shall be
provided to the compulsory retired civil employee.
(a) Ten Thousand Rupees for deducting the amount
of less than One year.
(b) Twenty Five Thousand Rupees for deducting the
amount of more than One year and less than Five
years.
(c) Fifty Thousand Rupees for deducting the amount
of more than Five year and less than Ten years.
(d) Seventy Five Thousand Rupees for deducting the
amount of more than Ten year and less than
Fifteen years.
(e) One Hundred Thousand Rupees for deducting
the amount of more than Twenty years.
Provided that, if the deposited amount,
interest and dividend be higher than the above
mentioned amount, the higher amount shall be
provided from the fund.
(4) If any civil employee who has made deduction pursuant to
Sub-section (2) retires from the service for any reason whatsoever,
prior to the twenty years deduction of amount, an amount equal to
the surrender (Samarpan) value shall be provided to such employee.
(5) Notwithstanding anything contained in sub-sections (2)
and (3), the retired employee shall provide continuity as maturity to
the fixed term life insurance amount in twenty or less than Twenty
years.
Provided that, Government of Nepal shall not provide any
amount for the same.
(6) Other provisions relating to the fixed term life insurance
fund shall be as prescribed.
▲ 40B. Provisions relating to study, training or study tour : (1) The
concerned Ministry, Commission or Secretariat shall, in order to
send the employees under it for study, training or study tour, prepare
a description thereon and forward it to the Ministry of General
Administration each year.
(2) The Ministry of General Administration must, upon
receipt of the description pursuant to Sub-section (1), specify the
number on subject-wise basis for study, training or study tour and
forward a description thereof to the National Planning Commission.
(3) There shall be a committee as follows to allocate the
opportunities of study, training or study tour received by the
National Planning ? Commission and other governmental institution
in the name of Government of Nepal to all the services
proportionately:
(a) Chief Secretary of the
Government of Nepal
Chairperson
(b) Secretary at the Ministry of
Finance
Member
(c) Secretary at the National
Planning Commission
Member
(d) Secretary at the Ministry of
General Administration
Member
Secretary
(4) The Ministry of General Administration shall distribute
opportunities as per the decision of the committee referred to in
Sub-section (3)
(5) The criteria for making nomination for a study, training or
study tour shall be as prescribed.
▲ 40C.Period for which service to be done upon completion of
study, training or study tour : Any civil employee who pursues a
study, training or goes on a study tour on the nomination of
Government of Nepal must, upon completing such a study, training
or study tour, serve in the Ministry or Office where he/she was in
service before going on for such study, training or study tour for up
to the period as mentioned below in a compulsory manner, subject to
this Act:
Period of study, training or Minimum period for which
study tour service is to be done
(a) Up to Three months One year
(b) From Three months to Six months One and half year
(c) From Six months to Nine months Two years
(d) From Nine months to One year Three years
(e) From One year to Two years Four years
(f) From Two years to Three years Five years
(g) From Three years to Four years Seven years
(h) From Four years to Five years Eight years
? 40D. Bond to be executed : (1) Any civil employee shall, before going
for having study, training or study tour, by the nomination of
government, execute a bond to the effect that he/she shall return
upon completing such study, training or study tour and carry out
service as referred to in Section 40C.
(2) If any civil employee does not return to the service after
completing the study, training or study tour or does not complete the
period of service required to be carried out under Section 40C., the
salary, allowances received by him/her during the period of the
study, training or study tour and other amounts mentioned in the
bond, as well, shall be realized from such employee as government
dues if such salary, allowances and other amounts be not returned
within the prescribed period.
(3) Any civil employee who, upon obtaining the prior
approval of the competent, has gone to carry out study, training or
study tour, shall execute a bond to the effect that he/she shall carry
out service as equal to the study training or study tour after the
completion of study, training or study tour.
(4) If a civil employee who has gone for study pursuant to
sub-sections (1) and (3) does not come for service or does not
complete the service period, the duration of such study, training or
study tour shall not be counted in service period of such employee.
(5) Notwithstanding anything contained elsewhere in this
Section, if an employee who has gone for study, training or study
tour gets compulsory retirement or dies, any amount shall not be
forfeited from him/her or him/her family for the non-completion of
service pursuant to Section 40C.

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