Suò.: Central Government employees retired during the period from January, 2020 to June, 2021 — calculation of Gratuity and Cash payment in lieu of Leave — regarding

 
 
No. 1(5)/E.V/2020
Government of India Ministry of Finance (Department of Expenditure)
North Block, New Felhi Date the 7th September, 2021
 
OFFICE MEMORANDUM
 
Suò.: Central Government employees  retired during the period from January, 2020 to June, 2021 —  calculation of Gratuity and  Cash payment in lieu of Leave — regarding.
 
The undersigned is directed to refer to this Ministry’s 0. M. No.1/1/2020-E.II(B)  dated 23.04.2020, read with O.M.  No.1/1/2020 E.II(B) dated 20.07.2021, in regard to payment of Dearness Allowance (DA)  during the period from 01.01.2020 up to 30.06.202 1 and to say that in terms thereof while the rate of DA during the said period shall remain at 17% of basic pay, the same has been  enhanced to 28% of basic pay subsuming  additional instalments  arising on  01.01.2020{4%),01.07.2020  (3%) & ;  01.01.2021(4%)  payable w.e.f.  01.07.2021.
 
As per the existing provisions contained in Central Civil Services (Pension) Rules  1972, DA on the date of retirement or death is reckoned as emoluments for the purpose of calculation of gratuity. Also, as per the existing provisions contained in CCS (Leave) Rules 1972, pay admissible  on the date of retirement plus DA on that are reckoned for the purpose of  calculation of cash payment in  lieu  of  leave.
 
In view of the  provisions  of  the  aforesaid  orders  of  this  Ministry  dated 23.04.2020 and 20.07.2021, calculation of gratuity and cash payment in lieu of leave in respect of Central Government employees who retired on or after 01.01.2020 and up to 30.06.2021 are required to be made  based on the rate of DA at 17% of basic pay.
 
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.
 
AccordingIy, the President is pIeased to  decide that in respect of  CentraI  Government  employees who retired on or  after 01.01.2020 and up to 30.06.2021,
the amount ol DA to be taken into account for calculation of gratuity and cast
payment in lieu of leave will be deemed to be as under.
 Employees retiring during the period
Notional Percentage of Dearness Allowance (DA) for calculation purpose
From 01.01.2020 to 30.06.2020      21% of basic pay
From 01.07. 2020  to 31.12.2020
24% of basic pay
01.01.2021 to 30.06.2021
  28% of basic pay
 
All other conditions as stipulated in CCS (Pension) Rules 1972 and the orders of Department  of  Pension  &  PW  vide  O.M.   No.7/5/2012-P&PW(F)/B   dated 26.08.2016 in respect of employees borne on National Pension System  (NPS) and CCS (Leave) Rules 1972, shall continue to be applicable while calculating gratuity and cash payment in lieu of leave respectively.
 
In their application to the persons  belonging to India Audit and Accounts  Department, these orders are issued under Article 148(5) of the Constitution and after consultation with the Comptroller and Auditor General of India.
 
Hindi version will follow

(Annie G.Mathew)
 Addl. Secretary to the Govt. of India

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