Gratuity & Leave Encashment – RBE No. 67/2021 – Dearness Allowance

No.PC-VII/2016/I/7/2/1, dated 17.09.2021

Sub: Revised rates of Dearness Allowance for employees retired during the period from January, 2020 to June, 2021- Calculation of Gratuity and Cash payment in lieu of Leave – regarding.

1.     A copy of Office Memorandum No.1(5)E.V/2020, dated 07.09.2021 of Department of Expenditure; Ministry of Finance on the above subject is enclosed herewith for information and compliance. This order shall apply mutatis mutandis on Railways also. The Department of Pension & Pensioners’ Welfare (DoP&PW)’s OM No.7/5/2012-P&PW(F)/B, dated 26.08.2016 mentioned in Para 6 of enclosed OM of Department of Expenditure, Ministry of Finance was adopted in Railways vide letter No.2012/E(E)III/1(1)/4, dated 05.09.2016 (RBE No. 105/2016).

2.     This issues with the concurrence of Finance Directorate of the Ministry of Railways.

3.     Hindi version will follow.

Ministry of Finance

(Department of Expenditure)

OM No.1(5)E.V/2020, dated 07.09.2021

Office Memorandum

Sub: Revised rates of Dearness Allowance for employees retired during the period from January, 2020 to June, 2021- Calculation of Gratuity and Cash payment in lieu of Leave – regarding.

1.     The undersigned is directed to refer to this Ministry’s OM No.1/1/2020-E.II(B), dated 23.04.2020, read with OM 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 installments arising on 01.01.2020 (4%), 01.07.2020 (3%) and 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 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 then what would have been calculated 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 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 OM 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 due 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.

Download Railway Board Circular RBE No.67/2021

Forward reference ⇒ RBE No.