7th Pay Commission: Great news has come for the central employees. There will be a benefit of more than 1 lakh in the gratuity of those who get 40 thousand basic salary.
7th pay commission Latest Update: Indian Railways and other Central Enterprises (CPSEs) which are responsible to the Central Government, their employees have got a big gift. The Modi government will benefit the retired Central Government Employees from these departments between January 2020 and June 2021. 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 the retirement fund. This benefit will be available in gratuity and leave encashment of holidays.
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.
More than 1 lakh benefits will be available on 40 thousand basic
If we look at the calculations, then the basic salary of an employee at the time of retirement is 40 thousand rupees, then he 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.
From 1st July 2020 to 31st December 2020, 24 per cent DA will be paid to retirees on account of gratuity and encashment of holidays.
Between January 1, 2021 and June 30, 2021, retirees will get a retirement fund at the rate of 28 per cent.
Know – who will benefit the most
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.
Know – how much will you get
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
- 11% DA Hike = Rs 4400 per month
- Basic + DA = Rs 44400 per month
- Gratuity + Leave Encashment Benefit = around Rs 1,16,600
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