The central government has issued a clarification with regards to Dearness Allowance (DA) for gratuity calculation and leave encashment for those central government pensioners who retired between 1st January 2020 to 30th June 2021. According to the latest Office Memorandum (OM) issued by the Department of Expenditure of Ministry of Finance, the gratuity and leave of the govt employees who retired during the period will be encashed without applying the frozen DA for that period.
.Simply put, for pensioners’ who retired between 1st January 2020 to 30th June 2021) gratuity and leave will be encashed keeping the DA installments announced for that period.
Clarifying on DA relevant for gratuity calculation and depart encashment, the Ministry of Finance Office Memorandum states: “Keeping in view that gratuity and money fee in lieu of depart is admissible to workers on retirement and lump sum admissible to workers retiring throughout retirement.” Retirement advantages are allowed for the interval from 01.01.2020 to 30.06.2021, a quantity lower than the computable quantity, however for the above orders of this Ministry dated 23.04.2020 and 20.07.2021, the matter is allowed has been thought-about sympathetically with a view to giving to such workers.”
As per the brand new order, those that retired from 1st January 2020 to thirtieth June 2020, their DA can be thought of 21 percent (17 + 4) whereas those that retired from 1st July 2020 to thirty-first December 2020 – their DA can be thought of 24 percent (17 + 4 + 3).
Meanwhile, who retired from 1st January 2021 to thirtieth June 2021, their relevant DA can be 28 percent (17 + 4 + 3 + 4). However, this enhanced DA can be relevant for gratuity calculation and go away encashment solely.
As per the present provisions contained in Central Civil Services (Pension) Rules 1972, DA on the date of retirement or loss of life is reckoned as emoluments for the aim of calculation of gratuity. Also, as per the present provisions contained in CCS (Leave) Rules 1972, pay admissible on the date of retirement plus DA on which might be reckoned for the aim of calculation of money fee in lieu of go away.
Meanwhile, Prime Minister Narendra Modi-led government at the Centre is set to increase the Dearness Allowance (DA) and Dearness Relief (DR) for lakhs of its employees and pensioners. It may be recalled that a few weeks ago the Centre had restored the proposal of giving central government employees the DA and DR hike from 17 per cent to 28 percent with effect from July 1, 2021.
This is a season of multiple bonanzas for the Central government employees. They are going to get a 3% DA hike ahead of the festive season, various media reports claimed to cite government sources. This additional DA hike will be given to them just months after their DA was restored from 17 percent to 28 per cent with effect from July 1, 2021.
“The Central government has decided to increase the dearness allowance for central government employees and pensioners by 11% to 28%,” I&B Minister Anurag Thakur had said announcing the DA hike.
