The increased dearness allowance will be considered for calculation of gratuity of Central Government pensioners.
The Central Government has clarified on the calculation of gratuity and Dearness Allowance (DA) for leave encashment of pensioners who have retired from the beginning of last year till June 30 this year. The Department of Expenditure, which comes under the Finance Ministry, has stated that the payment of gratuity and leave encashment of government employees who have retired during this period will be without applying the moratorium on DA.
With this these pensioners will get paid along with the installments of DA declared for that period.
According to the new order, the DA of the employees who retired between January 1, 2020 to June 30, 2020, will be considered as 21 per cent and that of the employees who retired between July 1, 2020 and December 31, 2020, will be considered as 24 per cent.
The DA of the employees retiring from the beginning of this year till June 30 will be 28 percent.
However, this increased DA will be applicable only for calculation of gratuity and leave encashment.
Under the Central Civil Services (Pension) Rules, DA on the date of retirement is considered for calculation of gratuity. Leave encashment is calculated by adding the salary and DA received on the date of retirement.
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