Salary fixed for Central Government Employees appointed after retirement; No DA, HRA, Increment allowed

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Updated: Dec 16, 2020 3:49 PM

The fixed amount will be the difference of the last pay drawn by the employee at the time of retirement and his basic pension. Also, no allowances such as DA, HRA and annual increments will be provided to such contractual employees.

central govt employees newsSuch employees will not get allowances like DA and HRA. They will, however, get transport allowance (TA). Paid leave of absence will be allowed at the rate of 1.5 days for each completed month of service. Image: PTI

The retired Central Government Employees hired as consultants will get a fixed monthly amount as remuneration. According to the Department of Expenditure (DoE) of the Ministry of Finance, this amount will be the difference of the last pay drawn by the employee at the time of retirement and his basic pension. Also, no allowances such as DA, HRA and annual increments will be provided to such contractual employees.

The DoE has said that such contractual appointments of retired Central Government Employees should not be a matter of practice. It should be done only when “public interest” would be served by such appointments.

“…such appointments shall not be made as a matter of practice and must be kept at a bare minimum. Such appointments may be made only in the justified exigencies of the official work where public interest is served by appointment of the retired employee. While making such appointments, adequate functional necessity with clear grounds must be placed before the appointing authority,” the DoE said in a recent Office Memorandum (O.M).

According to the O.M, the Department of Personnel and Training is in the process of drafting a Note for Committee of Secretaries (CoS) regarding guidelines for engagement of retired Government servants as Consultant in Government Ministries and Department. Till such guidelines are finalised and approved, the remuneration in cases of contract appointment of retired Central Government employees will be done on a uniform basis as mentioned below:

“A fixed monthly amount shall be admissible, arrived at by deducting the basic pension from the pay drawn at the time of retirement. The amount of remuneration so fixed shall remain unchanged for the term of the contract. There will be no annual increment/percentage increase during the contract period,” the DoE said.

Such employees will not get allowances like DA and HRA. They will, however, get transport allowance (TA). Paid leave of absence will be allowed at the rate of 1.5 days for each completed month of service.

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