Exservicemen Keep in mind -Must Avoid These 30 Mistakes

Indian Military Veterans

Double Gratuity for Ex-Servicemen (ESM): Facts, Rules, Myths, and Legal Position

Gratuity Rules and Recent Changes

Gratuity is a statutory retirement benefit awarded in acknowledgment of long and continuous service. For Ex-Servicemen (ESM) who retire from the Armed Forces and subsequently enter civil employment (Central/State Government, PSU, Autonomous Bodies, Banks, etc.), a persistent question arises:

Is an Ex-Serviceman eligible for gratuity twice—once for military service and again for civil re-employment?

This article explores the legal, administrative, and practical aspects concerning double gratuity, dispels prevalent myths, and clarifies eligibility criteria and conditions.

What is Meant by “Double Gratuity”?

Double gratuity signifies:

First Gratuity: Disbursed at the time of retirement/release from the Armed Forces

Second Gratuity: Disbursed following retirement from re-employment in civil services

These two gratuities stem from two separate employments, each governed by distinct service regulations.

Gratuity for Armed Forces Personnel

3.1 Governing Rules

Army/Navy/Air Force Pension Regulations

Payment of Gratuity under Defence Service Regulations

3.2 Nature of Military Gratuity

Disbursed upon retirement, discharge, invalidment, or completion of qualifying service

It constitutes a one-time terminal benefit

Entirely earned during defence service

Not associated with future civilian employment

Gratuity for Civil Re-employment after Military Service

4.1 Applicable Laws

Depending on the nature of re-employment:

CCS (Pension) Rules Payment of Gratuity Act, 1972

Service rules of PSUs, Banks, Autonomous Bodies

4.2 Key Principle

Gratuity in civil employment is payable solely for the duration of civil service, not for prior military service—unless explicitly permitted by regulations.

The Core Legal Question

✅ Clear Answer: NO

There exists no overarching legal prohibition that bars an Ex-Serviceman from receiving gratuity for two distinct employments, provided:

The gratuities pertain to non-overlapping service periods

Each gratuity is regulated by its own statutory framework.

Judicial & Administrative Position

Courts and administrative authorities have consistently held that:

• Military service and civil service are distinct
• Benefits earned under one cannot be denied under the other unless expressly barred

6.2 Important Observations

• Gratuity is not a pension substitute
• It is a reward for long service, not a welfare grant
• Denial of civil gratuity merely because military gratuity was drawn is arbitrary

Common Misinterpretations by Departments

 Wrong Practices Observed

Forcing ESM to refund military gratuity

Denying civil gratuity citing “double benefit”

Treating defence gratuity as “previous employer gratuity”

 Correct Position

• Defence gratuity cannot be equated with civil gratuity
• There is no rule under CCS or Gratuity Act mandating forfeiture of one for another

When Can Gratuity Be Restricted? (Exceptions)

Double gratuity may not be allowed only

 if Same service period is counted twice (not applicable for ESM)

Employee has opted for counting military service for civil pension with conditions attacheExplicit statutory bar exists (rare and rule-specific)

Option of Counting Military Service in Civil Employment

Some civil posts allow:

Counting past military service for pensionary benefits

 Important Trade-of

In such cases, refund of military gratuity may be required

This is voluntary, not compulsory

If no such option is exercised → no refund needed

Impact on Ex-Servicemen

10.1 Financial Impact

Loss of lakhs of rupees due to wrongful denial

Long litigation due to departmental ignorance

10.2 Psychological Impact

ESM feel penalised for serving the nation

Contradicts the spirit of resettlement and rehabilitation

What Ex-Servicemen Should Do

 Practical Steps

1. Demand written justification if gratuity is denied
2. Ask for rule citation, not office opinion
3. File representation quoting settled principles
4. Approach CAT / High Court if required

Need for Policy Clarification

There is an urgent need for:

Unified clarification by DoPT & MoD

Clear instructions to all departments

Training of Accounts & Establishment Sections

This will:

Reduce litigation

Protect ESM rights

Ensure uniform implementation

Download the Govt Orders on Latest Gratuity Rules for Reemployed Exserviceman – DOWNLOAD

Conclusion

Double gratuity for Ex-Servicemen is not a “double benefit” but a legitimate entitlement arising from two separate careers.
Any denial without explicit statutory backing is illegal, arbitrary, and unjustified.

A soldier does not forfeit his civilian rights merely because he once wore the uniform.

Exservicemen Keep in mind -Must Avoid These 30 Mistakes

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