RBE No. 266/1988: Fixation of Pay – On Re-employment

No.E(G)86 EM1-8, dated 06.12.1988

Sub: Fixation of pay of re-employed pensioners.

1.     Reference instructions issued vide this Ministry’s letter of even number dated 21.07.1988/ 01.08.1988 regarding fixation of pay on re-employment of pensioners. It was inter alia provided therein that in fixing the initial pay of re-employed pensioners, the pension equivalent of gratuity may not be deducted from the pay so fixed. These instructions were effective from 01.06.1988.

2.     A question has now arisen if the above mentioned provision regarding non-deduction of pension equivalent of gratuity w.e.f. 01.06.1988 while fixing initial pay on re-employment will also be applicable to re-employed pensioners who are already in re-employment as on 01.06.1988 and in whose case pension equivalent of gratuity was taken into consideration by fixing their initial pay.

3.     The matter has been carefully examined by this Ministry and they are pleased to decide that the provisions of their earlier letter of 21.07.1988/ 01.08.1988 referred to above will also extend to persons already re-employed prior to 01.06.1988 in whose case PEG was taken into account for initial pay fixation. Their pay would, therefore, be required to be re-fixed with effect from 01.06.1988 by ignoring the element of pension equivalent of gratuity.

4.     This issues with the concurrence of the Finance Directorate of the Ministry of Railways, Railway Board.

Download Railway Board Circular RBE No. 266/1988

Forward reference ⇒ RBE No.