The central authorities has issued clarification on the subject of Dearness Allowance (DA) for gratuity calculation and go away encashment for these central authorities pensioners who retired between 1st January 2020 to thirtieth June 2021. According to the most recent Office Memorandum (OM) issued by the Department of Expenditure of Ministry of Finance, the gratuity and go away of the government workers who retired in the course of the interval can be encashed with out making use of the freezed DA for that interval.
Simply put, for pensioners’ who retired between 1st January 2020 to thirtieth June 2021) gratuity and go away can be encashed protecting the DA installments introduced for that interval.
Clarifying on the relevant DA for gratuity calculation and go away encashment, the Ministry of Finance Office Memorandum says: “Keeping in view that gratuity and cash payment in lieu of leave are one-time retirement benefits admissible to employees on retirement and employees who retired during the period from 01.01.2020 to 30.06.2021 have been allowed lesser amount than what would have been calculable but for the aforesaid orders of this Ministry dated 23.04.2020 and 20.07.2021, the matter has been considered sympathetically with a view to allowing the same to such employees.”
As per the brand new order, those that retired from 1st January 2020 to thirtieth June 2020, there DA can be thought of 21 per cent (17 + 4) whereas those that retired from 1st July 2020 to thirty first December 2020 – their DA can be thought of 24 per cent (17 + 4 + 3).
Meanwhile, who retired from 1st January 2021 to thirtieth June 2021, their relevant DA can be 28 per cent (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.
In the wake of Covid-19 pandemic, central authorities had determined to freeze DA and DR advantages for central authorities workers and pensioners from the stated interval. The centre had stated that it will proceed to announce DA because it has been doing beforehand however the elevated DA and DR will not get added into the central authorities workers and pensioners’ month-to-month funds.
The centre introduced 4 per cent DA for January to June 2020, 3 per cent DA for July to December 2020 and 4 per cent DA for January to June 2021 interval.
However, whereas restoring the DA and DR advantages of central authorities servants and pensioners from 1st July 2021, it was discovered that because of the DA freezed throughout January 2020 to June 2021, pensioners will get gratuity and money for go away at 17 per cent DA. But, after this workplace order, pensioners who retired from 1st January 2020 to thirtieth June 2021, will get the identical gratuity and go away encashment advantages as they might have gotten with out freezing of DA.
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