7th pay commission: A big gift has been given to the employees of Indian Railways and other Central Enterprises (CPSEs) under the Central Government. The Modi government has given a big benefit to the retired CG employees between January 2020 and June 2021 from these departments. The government has approved an increase of 11 percent in Dearness Allowance to these retired employees. Employees from junior to senior level will benefit from about Rs 1 lakh to Rs 7 lakh in retirement fund. This benefit will be available in Gratuity and Leave Encashment.
According to Jay Kumar, Deputy Director, Pay Commission VII and HRMS Indian Railways, retired employees have been given the benefit of increased Dearness Allowance (DA). Now the people of the remaining departments are being given its benefit. Retired employees of all zones of the Railways will come under its purview.
Benefit of more than 1 lakh on 40 thousand basic
On the basis of calculation, if the basic salary of an employee at the time of retirement is 40 thousand rupees, then they will get more benefit in the increased 11 percent dearness allowance. The amount of Gratuity and Leave Encashment will increase by about Rs 1,17,000. Those with a basic salary of Rs 2,50,000 will get a benefit of more than Rs 7 lakh in the retirement fund.
Benefit will be available in three categories
Employees who retired between 1st January 2020 to 30th June 2020 will get Gratuity and Leave Encashment at the rate of 21 per cent DA. At the same time, 24% for retirees from 1 July 2020 to 31 December 2020 and 28 percent for retirees between 1 January 2021 to 30 June 2021.
Who will get the most benefit
Employees who retired between 1 January 2021 to 30 June 2021 will get the biggest benefit. His retirement fund will be calculated at 28 per cent dearness allowance. The money of retired employees between July-December 2020 will be calculated at 24 percent DA. At the same time, the money of those who retire in January-June 2020 will be calculated at 21 percent DA.
How much profit
If retirement is seen between 1 January 2020-30 June 2021, then the calculation will be something like this.
Basic Salary = Rs 40000 per month
and 11% DA Hike = Rs 4400 per month
Basic + DA = Rs 44400 per month
Gratuity + Leave Encashment Benefit = around Rs 1,16,600
