Money is an essential part of human civilization. Even though whether money brings you happiness or not is a topic of debate, money sure does brings convenience. But what if you are paid a lesser amount of money than what you are owed? That might get under your nerves, right?
All employees who retired between January 1, 2020, and July 30, 2021, kind of felt the same when they received a lesser amount for Gratuity and other benefits. It seems like, the government has taken the concern of these retired people into account and is ready to make it right.
Government revises rules for Gratuity
The Central Government recently revised the percentage of Dearness Allowance (DA) to be considered for the calculation of Gratuity and Leave Encashment of Central Government employees. Only the central government employees who retired between January 1, 2020, and July 30, 2021, are eligible for this.
In order to clarify this matter further, the office memorandum said, “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.”
This means for the people retired in-between above mentioned period, the gratuity and leave will be enchased while keeping the DA installments announced for that period.
The general breakup of the DA and the benefits of the employees/pensioners are as follows:
1) For employees who retired between the period of January 1, 2020, to June 30, 2020, the applicable DA rate is 21 percent. This consists of 17 percent plus 4 percent for the period January 1, 2020, to June 30, 2020.
2) For those employees who retired between the period of July 1, 2020, to December 31, 2020, the applicable DA rate is 24 percent. This is broken down as 17 percent plus 4 percent for the period January 1, 2020, to June 30, 2020, and 4 percent for July 1 to December 31, 2020.
3) For employees who had retired between the timeframe of January 1, 2021, to June 30, 2021, the applicable DA rate is 28 percent. This is broken down into 17 percent plus 4 percent for the period January 1, 2020, to June 30, 2020, 4 percent for July 1 to December 31, 2020, and 3 percent for January 1 to June 30, 2021.
Possibility of Rs 7 Lakh in Retirement Funds?
HS Tiwari, the Former President of AG Office Brotherhood, Prayagraj, which calculates DA, said if that same basic pay clocked in at say Rs 250,000 per month, then that retirement fund would significantly increase by more than Rs 7 lakh for that government employee, the report mentioned.
If your basic salary is around Rs 40,000 a month and the 11 percent DA hike for the one and a half, year period came into play, and that would bring the amount to around an additional Rs 4,400. Therefore the total basic salary and the DA hike would be Rs 44,000 per month. Now, if you add the benefits of gratuity and leave encashment then it would come up to around Rs 116,660 per month.
As per the current guidelines, the gratuity payment is effective only after the completion of five years of service. New labor codes are about to bring down this period to one year. It is expected to be implemented by the beginning of the next financial year.
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