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Calculation of Gratuity and Cash payment in lieu of Leave for CG (Central Government employees) retired during the period from January 2020 to June 2021

  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 30.06.2021 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.

2. 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.

3.           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.

4.  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.

5. Accordingly,  the  President  is  pleased  to  decide  that  in  respect   of   Central Government  employees  who retired  on or after  01.01.2020  and up to 30.06.2021,the  amount   of   DA   to  be   taken   into  account   for calculation  of   gratuity   and cash 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

From 01.01.2021 to 30.06.2021

28% of Basic Pay

 6.           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.

7.          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.

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