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Chapter-7 Retirement, gratuity and pension

Chapter-7 Retirement, gratuity and pension
45. Compulsory retirement :

(1) Any employee who has completed the vage of Sixty years or the tenure as referred to in Section 19 shall ipso
facto retire from the service.
(2) Notwithstanding anything contained in Sub-section (1), if the Government of Nepal needs the expert service, it may add the service period of an employee who retires on completion of the age of Sixty years, for maximum period of Three years.
(3) Even the employees who are incumbent in service on the extension of their tenure after completion of the thirty-year service period pursuant to the Civil Service Act, 2049 (1993) may hold office in the health service until they complete the age of Sixty years.

(4) For purposes of this Section, the age of an employee shall be calculated as follows:
(a) The age to be set from the birth day or year inscribed in the certificate of educational institute
submitted by him or her at the time of joining the service,
(b) Failing the records as referred to in Clause (a), the age to be set from the birth day or year inscribed in
the sheet roll/personal details filled up by him or her at the time of joining the service.

46. Voluntary retirement : Any employee who is eligible to receive pension and has completed the age limit of Fifty years 48 may voluntarily retire from the service on such terms and within such period as set forth and specified in a Notification published by the 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.

47. Gratuity :

(1) If any employee, who has served for Five years or more in the health service 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 or she shall receive gratuity at the following
rate:
(a) In the case of the employee who has served in the health service from Five years to Ten years, half the
last month’s salary for each year of his or her service,
(b) In the case of the employee who has served in the health service for more than Ten years up to fifteen
years, the last one month’s salary for each year of his or her service,
(c) In the case of the employee who has served in the health service for more than Fifteen years but less
than Twenty years, the last one and half month’s salary for each year of his or her service.
(2) Notwithstanding anything contained in Sub-section (1), no gratuity shall be paid to any employee who is proved to have lied about citizenship or age or qualification with the intention of entering into or
continuing to hold the health service, and such employee shall be subject to punishment pursuant to the prevailing law.

48. Pension : (1) An employee who has been in the health service for a period of Twenty years or more shall be entitled to a monthly pension  at the following rate:
Total year of service × amount of the last salary 50 Provided that:
(1) No 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 employee who is proved to have lied about citizenship or age or
qualification with the intention of entering into or continuing to hold the health service; and such
employee shall be subject to punishment pursuant to the prevailing law.
(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 employee of the same post and more than the basic scale of the incumbent employee of the same post.
(3) If any employee who was in the Nepal Health Service pursuant to the Civil Service Act, 2049 (1993) and has now been changed to the health service as referred to in this Act completes the term and gets retired pursuant to Section 19, his or her total service period shall be fixed by adding such period as is required for him or her
to complete Sixty years of age. (3a)
50 If any employee who has completed a service period of Fifteen years but not Twenty years dies, a maximum period of Five years shall be added to his or her service period, and his or her family shall be allowed to receive either pension or gratuity, whichever that family chooses.

(4) If any person who is receiving pension on account of his or her earlier service in any government post is appointed to the health service post later, he or she shall be entitled to pension pursuant to this
Section, with the addition of the period of his or her earlier service to that of his or her subsequent service.
(5)
51 If an employee who has continuously served in a post under development positions prior to 14 Jestha 2054 been appointed to a post under regular positions wishes to obtain pension, pension shall be
provided to that employee by adding such additional service period, out of his or her service period under the development positions, as may be required for pension.

49. Increment in pension : Where the salary of the incumbent 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 employee of the same post.

50. Family pension and gratuity : (1) If any employee dies while in service or prior to completion of Seven years after he or she started to  receive pension, a gratuity or pension as provided for in Section 47 or
48 shall be provided to his or 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 employee, who died prior to the completion of Seven years after he or 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 or she shall be entitled to such pension until he or she attends majority.
(3) The widower husband or widow wife of an 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 or 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 or she started to receive pension.
(4) Where the salary of incumbent 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 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 employee has nominated any member of his or her family or his or 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 the nearest heir from amongst the members of his or her family.

51. Reference of salary :

(1) Wherever in this Chapter and in Chapter-6, a reference of salary is made, it shall mean the concerned employee’s
salary amount (including salary increment) for the time being.
(2) For purposes of Sections 47 and 48, the term “last salary” shall mean the concerned employee’s salary at the time of his/her retirement, and if any 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.

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