After the decision taken by the Central Government on freezing of Dearness Allowance and Dearness Relief from 1.1.2020, the Central Govt employees who have retired after 1.1.2020 facing a huge loss on the calculation of Gratuity and leave salary.
A sample calculation is given for better understanding:
Loss of Gratuity and Leave Salary Due to Freezing of Dearness Allowance of 21% w.e.f. 1-1-2020
Basic Pay: Rs. 53600
Date of Retirement: 30.04.2020
DA Admissible: 21%
DA Taken: 17%
Emoluments Based on 17%: Rs. 62,712
Emoluments Based on 21%: Rs. 64,856
Gratuity Calculation for 16.5 months
DA 21%: Rs. 10,70,124
DA 17%: Rs. 10,34,748
Loss in Gratuity: Rs. 35376
Leave Salary Calculation for 300 Days
DA 21%: Rs. 6,48,860
DA 17%: Rs. 6,27,120
Loss in Gratuity: Rs. 21,740
Total Loss after Freezing of DA and DR
Loss in Gratuity: Rs. 35,376
Loss in Leave Salary : Rs. 21,740