Central Government employees retired during the period from January, 2020 to June, 2021 – Calculation of Gratuity and Cash payment in lieu of Leave
North Block,
New Delhi
Date the 7th September 2021
OFFICE MEMORANDUM
Sub: 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 O.M. No.1/1/2020-E.11(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 the 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.
8. Hindi version will follow.
(Annie G. Mathew)
Addl. Secretary to the Govt. of India
Download Leave
Encashment and Gratuity for pensioners DoE Order
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