7th pay commission : However, this increased DA will be applicable only for gratuity calculation and leave encashment.
In a big announcement on Wednesday, the Central Government issued clarification on Dearness Allowance (DA) for gratuity calculation and leave encachement of 7th pay commission retired government employees. This clarification is for government pensioners who retired between January 1, 2020 and June 30, 2021. In which a big decision has been taken on gratuity including their dearness allowance.
As per the clarification of the Department of Expenditure, Ministry of Finance, gratuity and leave of government employees who have retired during that period will be paid without applying the frozen DA for that period. In simple words, gratuity and leave of government employees retiring between 1 January 2020 to 30 June 2021 will be paid by retaining the DA installments announced for that period.
The order of the department said that keeping in view that gratuity and cash payment in lieu of leave is a lump sum retirement benefit admissible to the employees on retirement and the employees who have retired during the period 01.01.2020 to 30.06.2021. They have been allowed an amount less than the countable amount. But to the said orders of this Ministry dated 23.04.2020 and 20.07.2021, the matter has been considered sympathetically with a view to granting equal permission to such employees.
According to the letter of the department, the DA of government employees retiring from 1st January 2020 to 30th June 2020 will be considered as 21 per cent (17+4) while those retiring from 1st July 2020 to 31st December 2020 will have DA. 24 percent (17+4+3) will be considered.
Meanwhile, the applicable DA for government employees who retired from January 1, 2021 to June 30, 2021, would be 28 per cent (17+4+3+4). However, this increased DA will be applicable only for gratuity calculation and leave encashment. Due to the corona pandemic, the Center had decided to freeze DA and DR benefits for central government employees and pensioners. However, DA was reinstated in July this year.
