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HomePersonal Finance7th pay commission: Good news! Gratuity of basic employees increased by Rs...

7th pay commission: Good news! Gratuity of basic employees increased by Rs 9500, know latest details from center

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After the employees of Indian Railways, now the Modi government has become kind to the other retired employees. The government has announced to give them the benefit of increase in Dearness Allowance, which will have a direct impact on their Gratuity and Leave Encashment.



After the employees of Indian Railways, now the Modi government has become kind to the other retired employees. The government has announced to give them the benefit of increase in Dearness Allowance, which will have a direct impact on their Gratuity and Leave Encashment. These are the employees who have retired between 1 October 2020 to 30 June 2021 and were working in Central Enterprises (CPSEs). This increase includes employees of basic salary from Rs 3500 to 9500 and above.

According to the government announcement, these people will get the benefit of the increase in freeze DA during the Covid mahamari. Let us inform that the government had frozen the dearness allowance between January 2020 and June 2021 (one and a half years), which was later reinstated from July 1, 2021. Due to this, the DA of central employees has increased from 17 percent to 31 percent. This benefit will be in the form of Gratuity and Leave Encashment.

According to Shamsul Haque, Under Secretary in the Government of India, the benefit of this change will be for those in the 2017 pay scale, 2007 pay scale, 1997 pay scale and 1992 and 1987 pay scale. Former President of AG Office Brotherhood, Prayagraj and DA Expert HS Tiwari told Jagran.com that the central government had taken the same decision regarding other central employees. In this, the benefit of dearness allowance was given to the retired employees between January 1, 2020 and June 30, 2021. Now the same formula is being adopted in the central enterprise also. However the date is different here.


How much will be the benefit

HS Tiwari said that the government has decided that employees retiring between 01.10.2020 to 31.12.2020 will get 20.9 percent DA of basic in the 2017 pay scale. At the same time, 23.7 percent of basic should be given to the employees who retired between 01.01.2021 to 31.03.2021 and 23.2 percent of DA to those who retired between 01.04.2021 to 30.06.2021. Accordingly, now their Gratuity and Leave Encash will be there.

Those with 2007 pay scale will benefit

Tiwari said that in the 2007 pay scale, people who retire between October and June will get 165.4%, 171.7% and 170.5 percent DA. At the same time, 348.1%, 358.7% and 356.7% DA has been fixed in the 1997 pay scale. The rate of DA has also been fixed for those on the 1992 and 1987 pay scales.

How much will be DA now?

Tiwari said that according to the government formula, these retired employees will now get Rs 13110 to Rs 34932 as DA. On the same basis, Gratuity and Leave Encashment will be increased.


Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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