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You are here: Home / Huge loss for Central Govt Employees Retired after 1.1.2020!

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Huge loss for Central Govt Employees Retired after 1.1.2020!

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

Total Loss: Rs. 57,116


Also Check: Central Government Pay Matrix Table 2022 PDF
Related updates:

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    DA expected to cross 25% from July 2020 – Serious impact on revision of HRA to Central Govt Employees
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