7th Pay Commission: Central govt pensioners to get DA gratuity, cash payments
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7th Pay Commission: Central govt pensioners to get DA gratuity, cash payments

By Jessica

New Delhi: In yet another good news related to the 7th Pay Commission, the Department of Expenditure of the Ministry of Finance has issued an order to provide cash payment and gratuity, along with dearness allowance (DA) benefits to retired central government employees. 

The department will be releasing the gratuity for the period between January 2020 to June 2021. The Finance Ministry has issued a memorandum, according to which, the government is all set to release gratuity for dearness allowance to pensioners retiring in-between of January 1, 2020, to June 30, 2021. 

In a tweet, the department said that the Ministry of Finance Office has issued a memorandum related to gratuity and leave encashment for retired central government employees on 7 September 2021. 

The Memorandum reads, “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 than what would have been calculable 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.”

How much dearness allowance will you get? 

The order is applicable for those who retired from January 2020 to June 2021. However, since the government revised DA on three separate occasions in the given period, the DA provided to the pensioners will also differ accordingly. Also Read: Nifty, Sensex open higher as metal, banking stocks gain

For instance, for employees retiring between 1 January 2020 to 31 June 2020, the DA will be provided at a 21% rate (17% + 4%). Central government employees retiring between 1 July 2020 to 31 December 2020 will get DA at a 24% rate (17% + 4 % + 3%) while those retiring between  1 January 2021 to 30 January 2021 will receive DA at a 28% rate.  So in total, pensioners can receive benefits worth lakhs of rupees. Also Read: Hospitality giant OYO to file for $1.2 billion IPO next week: Report

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