RBE No.121/2025: Railway Services (Payment of Gratuity under National Pension System) Rules, 2025 Explained
The Ministry of Railways has released RBE No.121/2025, announcing the notification of the Railway Services (Payment of Gratuity under National Pension System) Rules, 2025. These rules were published in the Gazette of India vide G.S.R. 852(E) dated 14 November 2025 and mark an important update for railway employees appointed under the National Pension System (NPS).
This article provides a simplified and easy-to-understand breakdown of the key points mentioned in the notification.
1. What RBE No.121/2025 Announces
Through RBE No.121/2025, the Railway Board has circulated the newly notified rules regarding payment of gratuity to NPS-covered railway employees. A copy of the Gazette notification has been enclosed for information and necessary compliance by Zonal Railways, Production Units, and other concerned authorities.
The notification has been issued by G. Priya Sudarsani, Director Finance (Estt.), Railway Board, directing all units to acknowledge receipt and implement the provisions accordingly.
2. Short Title and Commencement of New Rules
The rules are officially titled:
“Railway Services (Payment of Gratuity under National Pension System) Rules, 2025.”
Important points:
- The rules come into force retrospectively from 1 January 2004, the date NPS was originally introduced for Central Government employees.
- This ensures uniformity in gratuity-related provisions for all NPS railway employees appointed on or after that date.
3. Applicability of the New Gratuity Rules
These rules apply to:
- Railway servants appointed substantively on or after 1 January 2004; and
- Employees to whom the Railway Services (Implementation of National Pension System) Rules, 2025 apply.
Exception Clause
If a railway employee:
- dies during service, or
- is boarded out due to disablement, or
- retires on invalidation,
and they had chosen to shift to Railway Services (Pension) Rules, 1993 or Railway Services (Extraordinary Pension) Rules, 1993 under Rule 10 of the NPS Implementation Rules, then gratuity will be paid as per those older pension rules.
This ensures fairness for employees opting for traditional pension benefits under special circumstances.
4. Key Definitions Under the New Rules
The notification provides clear definitions to avoid ambiguity. Some important terms include:
Accounts Officer
Refers to the Principal Financial Advisor or any officer appointed by the Railway Board for managing gratuity-related matters.
Allottee
A railway servant allotted government or railway accommodation through licence fee or otherwise.
Emoluments & Average Emoluments
- “Emoluments” are those explained under Rule 6 of the new rules.
- “Average Emoluments” will be calculated as per Rule 7 for determining gratuity.
Qualifying Service
Service rendered on duty or otherwise that is counted for calculating gratuity.
Railway Servant
Includes all persons serving under administrative control of the Railway Board, including top-level officers like Chairman & CEO and Members of Railway Board.
Casual labour and employees on deputation from other departments are not included.
Government Dues
Dues recoverable from a railway employee, as covered under Rule 45.
Service Book
A physical or digital record containing complete service details of a railway employee.
The rules also clarify that any term not defined but present in the Indian Railway Establishment Code or NPS Implementation Rules, 2025 will carry the same meaning.
5. Purpose of Notifying These Rules
The introduction of the Railway Services (Payment of Gratuity under NPS) Rules, 2025 aims to:
- Provide a clear and standardized framework for payment of retirement and death gratuity to NPS-covered railway employees.
- Maintain transparency and uniformity across all railway units.
- Align gratuity provisions with the revised NPS-related rules notified in 2025.
These rules fill a long-standing gap by formally defining how gratuity must be processed for NPS employees in Indian Railways, ensuring fairness and clarity.
Conclusion
RBE No.121/2025 marks an important milestone for railway employees working under the National Pension System. By notifying these comprehensive gratuity rules, the Ministry of Railways has brought greater clarity, uniformity, and security to the service benefits of NPS-era employees.
Employees and administrative staff are advised to go through the detailed rules for complete understanding and implementation.