Central government employees will get DA hike, gratuity, leave encashment. Learn Count

What’s even better news for? central government employees Ahead of the festive season, the government has announced that they will get gratuity, cash payment and a hike in their salaries. dearness allowance (DA). Department of Expenditure, Under Ministry of Financeissued an office memorandum dated September 7, 2021, stating that The office memorandum states that retired central employees will get cash payment and gratuity. Gratuity information for January 2020 to June 2021 has also been released. The memorandum also mentions issuance of DA from January 1, 2020 to June 30, 2021.

The Finance Ministry took to Twitter to inform about the benefits to the retired employees. It was announced that these benefits will be given to those employees who have retired during the period from January 2020 to June 2021. “Department of Expenditure has issued OM dated 07.09.2021 regarding calculation of gratuity and leave encashment for Central Govt. Employees, who retired during the period January 2020 to June 2021,” the Department of Pension and Pensioners Welfare tweeted.

The move comes after the central government recently hiked the DA and Dearness Relief (DR) of its employees and pensioners. The hike by the government has increased the DA from the previous 17 per cent to 28 per cent with effect from July 1. Last year the DA was put on hold as a result of the outbreak of COVID-19 and the ensuing pandemic. economy was affected. As a result, DA for the period January 2020 to June 2021 remained constant.

The matters relating to payment of DA during the period from January 1, 2020 to June 30, 2021 have been mentioned in the memorandum. The memorandum states that the rate of DA for this period will remain at 17 per cent of the basic pay, however, it also states that on January 1, 2020 (4 per cent), July 1, 2020 (3 per cent) and January 1, 2020, It has been increased to 28 percent of the basic pay by including additional installments due on 2021 (4 percent). St) is due from July 1, 2021.

office memorandum details

1) As per the extant provisions contained in the Central Civil Services (Pension) Rules, 1972, DA on the date of retirement or death is counted as emoluments for the purpose of computing gratuity. Further, as per the extant provisions contained in the CCS (Leave) Rules, 1972, the salary is admissible on the date of retirement and DA thereon is calculated for the purpose of computing cash payment in lieu of leave.

2) Computation of gratuity and cash payment in respect of Central Government employees who retired on or after the 1st day of January, having regard to the provisions of the said orders of this Ministry dated 23rd April, 2020 and 20th July, 2021 Huh. , 2020 and till June 30, 2021, is required to be made on the basis of DA at the rate of 17 per cent of the basic pay.

3) Keeping in view that gratuity and cash payment in lieu of leave are lump sum retirement benefits admissible to employees on retirement and employees who have retired during the period from 1st January, 2020 to 30th June, 2021, will be given less than amount is allowed. Whether computable but to the said orders of this Ministry dated 23rd April, 2020 and 20th July, 2021, the matter has been considered sympathetically with a view to permit such employees.

4) Accordingly, the President is pleased to decide that in respect of Central Government employees who have retired on or after January 1, 2020 and up to June 30, 2021, the amount of DA for computing gratuity shall be taken into account and treated under cash payment in lieu of leave; The estimated percentage of Dearness Allowance (DA) for the purpose of calculation and the employee retiring during the period will be:

From January 01, 2020 to June 30, 2020: 21 percent of basic pay

From July 01, 2020 to December 31, 2020: 24 percent of basic pay

01 Jan 2021 to 30 May 2021: 28 percent of basic pay

5) All other conditions laid down in the CCS (Pension) Rules, 1972 and orders of the Department of Pension and PW shall be applicable while computing the payment of gratuity and cash in lieu of leave respectively.

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