Payment of Gratuity in Addition to Contributory Provident Fund (CPF)

Government of Pakistan, Finance Division has issued Notification on 23-01-2019 in connection with Payment of Gratuity in Addition to Contributory Provident Fund (CPF). Detail is as under:

The undersigned is directed to refer to this Division’s O.M.No.F.l5 (3) R-14/84 dated 16.10.1984 (Annex-1), reiterated vide O.M No.F.10 (l) R-7/2009-412 dated 21st January, 2015 (Annex-H) on the subject noted above and to say that Finance Division has received some references from different Organizations for regularization of un-authorized payment of gratuity in addition to paid Contributory Provident Fund (CPF) in violation of Finance Division's policy dated 16.10.1984. Some Autonomous/Semi-autonomous Bodies /Corporations etc. have also requested Finance Division that the benefits of gratuity, in addition to CPF, may be allowed to their employees.

2.           For this purpose, a committee is being constituted to review the issues and Finance Division's policy dated 16.10.1984, wherein the payment of gratuity was disallowed in addition to CPF contribution.

3.                    Hence, in order to initiate the exercise of reviewing Finance Division's Policy O.M No. 15(3) R-14/84 dated 16-10-1984, reiterated vide O.M No. F.No. (l)R-7/2009-412 dated 21st January,  2015,  all  Ministries  and  Divisions  are  requested  to  provide  the  following information in respect of Autonomous / Semi-Autonomous Bodies and Corporations etc administered by them:-

(i)         List of  all  Autonomous I Semi-Autonomous Bodies and Corporations administered under respective Ministries I Divisions.

(ii)          Copies of the Acts/Ordinances and Financial Rules etc, if any, of the autonomous/semi-autonomous bodies and corporations.

(iii)       Current retirement benefits granted by autonomous I semi-autonomous and corporations etc to their employees.

(iv)       Total expenditure incurred during previous financial year in lieu of current retirement benefits granted by autonomous I semi-autonomous bodies and corporations to their employees, at present.

Special thanks to Mr. Liaquat Kamboh for sending the copy of the Payment of Gratuity in Addition to Contributory Provident Fund (CPF).