Big news for central government employees! Dearness Allowance amount to calculate gratuity, leave encashment enhanced --Check out the new table

For the central government employees retired during the period from January 2020 to June 2021 --calculation of gratuity and cash payment in lieu of leave based on Dearness Allowance has been enhanced.

New Delhi: The Department of Expenditure under the Ministry of Finance has released an Office Memorandum regarding the calculation of gratuity and cash payment in lieu of leave for the central government employees. The subject line reads central government employees retired during the period from January 2020 to June 2021 --calculation of gratuity and cash payment in lieu of leave. "...in regard to payment of Dearness Allowance (DA) during the period from 01.01.2020 to 30.06.2021 and to say that in terms thereof while the rate of DA during the said period shall remain at 17 percent of basic pay, the same has been enhanced to 28 percent to basic pay subsuming additional instalments arising on 0.1.01.2020 (4 percent), 01.07.2020 (3 percent) and 01.01.2021 (4 percent) payable with effect from 01.07.2021,” reads the OM.