Engaging or Hiring of Retired Government Employees on Contract Basis Appointment Rules

Finance Ministry recently (13th August 2020) issued a notification regarding the rules and regulations for appointment of retired Central Government employees as contract basis.

How to fix salary for retired cg employees as contract basis?

• A consolidated fixed amount of salary shall be admissible to contract staff in Central Government. As per the new guidelines, the monthly salary is arrived at by deducting the basic pension (not bank pension) form the pay drawn at the time of retirement. The pay means basic salary plus Dearness Allowance.

Is HRA (House Rent Allowance) eligible for contract staff in Central Government?

• No HRA shall ordinarily be admissible, except in those case where special dispensation is allowed by the Appointments Committee of the Cabinet . Further, no HRA shall be admissible in case the appointee has a house either in self name or the name of spouse at the place of appointment. Also, if the retired employee is retaining the Government accommodation after retirement as per the Rules of Directorate of Estate, the HRA shall be admissible only from the date of vacation of the Government accommodation.

Is TA (Transport Allowance) for retired cg employees appointed on contract basis in Central Govt?

• An appropriate and fixed amount as Transport Allowance for the purpose of commuting between the residence and the place of work shall be allowed not exceeding the rate applicable to the appointee at the time of retirement . The amount so f ixed shall remain unchanged during the term of appointment .

What is Leave Rules for contract staff in Central Govt?

• 7.6 Paid leave of absence may be allowed at the rate of 1.5 days for each completed month of service.