(1) The Government of Nepal shall establish a separate gratuity and pension fund for the purpose of giving gratuity and pension to the civil servants who are appointed after the specified date by publishing a notice in the Nepal Gazette and deducting the amount from the monthly salary of such employees at the rate of ten percent, the Government of Nepal shall deduct ten percent of the monthly salary from that amount. The amount will be added to the amount equal to the percentage and will be deposited in that fund.
(2) Sub-section (1A) of section 32, section 34A, 35, 36, 37, 38, 39 and 39A. The provisions related to gratuity and pension shall not be applicable to the employees who are appointed after the publication of the notification under sub-section (1).
(3) According to sub-section (1), the amount equal to the amount deducted from the monthly salary will be provided by the Government of Nepal at the time of payment of salary to such employee.
(4) Notwithstanding anything contained in sub-section (3), the total amount deducted from his salary in the said fund and the interest accrued thereon shall be paid to the civil servant who has been dismissed from the service as per sub-section (2) of clause (b) of section 59. And the profit will be taken in lump sum.
(5) The management, operation, process of fund collection, payment of funds collected for gratuity and pension purposes and other arrangements related to fund collection shall be as prescribed.