7th Pay Commission Latest News : After this office order, pensioners retiring from 1st January 2020 to 30th June 2021 will get the same gratuity and leave encashment benefits, which they used to get without DA freeze.
The Central Government has issued clarification regarding gratuity calculation and Dearness Allowance (DA) for leave encashment for Central Government pensioners retiring from January 1, 2020 to June 30, 2021. New Office Memorandum issued by the Department of Expenditure The gratuity and leave of the Central Government employees who have retired between 1 January 2020 to 30 June 2021 will be encashed by applying non-stop DA for that period. i.e. Central Government pensioners who retired from 1st January 2020 to 30th June 2021, their gratuity and leave will be encashed by retaining the announced DA installments for that period.
According to the new order issued by the Department of Expenditure, Ministry of Finance, according to which DA will be received, for those who have retired from January 1, 2020 to June 30, 2020, DA will be kept at 21 percent. Those who retire from 1st July 2020 to 31st December 2020 will be treated as 24 per cent DA, while for those retiring from 1st January 2021 to 30th June 2021, their applicable DA will be 28 per cent. However, this increased DA will be applicable only for gratuity calculation and leave encashment.
Such rules are in accordance with the central civil service existing provisions in Rule 1972 (pension), retirement and counted as award aimed calculation gratuity the DA on the death date. Also, as per the provisions of the CCS (Leave) Rules, 1972, the pay admissible on the date of retirement and DA thereon is counted for the purpose of calculation of cash payment in lieu of leave.
What was said in the announcement of DA/DR freeze In view of the COVID-19 pandemic, the Central Government has decided to freeze DA and DR benefits for Central Government employees and pensioners from January 1, 2020 to June 30, 2021. In announcing this DA freeze, the Central Government had said that the Center will continue to announce DA as it has been doing earlier but the increased DA and DR will not be added to the monthly payment of Central Government employees and pensioners. The Center announced 4 per cent DA for January to June 2020, 3 per cent DA for July to December 2020 and 4 per cent DA for the period January to June 2021.
DA and DR restored from
July 2021 DA and DR benefits of central government employees and pensioners were restored from July 1, 2021. On the other hand, due to DA freeze during January 2020 to June 2021, pensioners will get gratuity and leave cash at 17 per cent DA. But, following this office order, pensioners who retired from 1st January 2020 to 30th June 2021 will get the same gratuity and leave encashment benefits as they were getting without DA freeze.
