On Thursday, in a big development, the Union Finance Ministry released some details about the computation of gratuity and cash payment in place of leave for all the Central government employees who retired between the time period of January 2020 and June 2021. For all these employees, the amount of Dearness Allowance (DA) has also been published. This DA will help in calculating the gratuity and leave encashment.
In a tweet, the Department of Pension & Pensioners’ Welfare said, “Department of Expenditure has issued O.M. dated 07.09.2021 regarding the calculation of Gratuity and Leave Encashment for Central Govt. employees, who retired during the period from January 2020 to June 2021.”
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- In its Office Memorandum, the Ministry of Finance’s Department of Expenditure stated that under the current norms in the Central Civil Services (Pension) Rules, 1972, the DA on the date of retirement of death is considered as compensations for calculation of gratuity.
- The Office Memorandum also said that according to the existing provisions contained in CCS (Leave) Rules, 1972, the pay applicable on the retirement date plus DA on that are counted for calculation of cash payment instead of leave.
- The Office Memorandum states that the calculation for all employees who retired between January 1, 2020, to June 30, 2020, is 21% of basic pay.
- For employees who retired between July 1, 2020, and December 31, 2020, is 24% of basic pay.
- For employees retired between January 1, 2021, to June 30, 20201, in 28% of basic pay.