The Modi government has also been kind to the employees of Indian Railways and other Central Enterprises (CPSEs).
The government has talked about huge benefits for retirees between January 2020 and June 2021 from these enterprises. The government has agreed to give the benefit of 11 percent jump in Dearness Allowance to these retired employees. With this, the junior to senior level employee will benefit from about Rs 1 lakh to 7 lakh in the retirement fund. This benefit will be in the form of Gratuity and Leave Encashment.
According to Jai Kumar ji, Pay Commission VII of Indian Railways and Deputy Director, HRMS, the benefit of increase in Dearness Allowance (DA) has already been given to retired Central Government employees. Now the people of the remaining departments are being given its benefit. Under this, retired employees of all zones of the railway will come.
Benefit of more than 1 lakh on 40 thousand basic
HS Tiwari, former president of AG Office Brotherhood, Prayagraj, which calculates DA, said that if the basic salary of an employee is 40 thousand rupees at the time of retirement, then he will get a big benefit from the 11 percent increase in dearness allowance. The amount of their Gratuity and Leave Encashment will increase by about Rs 117000. On the other hand, if the basic pay is Rs 250000 a month, then the retirement fund will increase by more than Rs 7 lakh.
Who will benefit how much
HS Tiwari said that the government has decided that between January 1, 2020 and June 30, 2020, retirees will get gratuity and leave encashment at the rate of 21 percent DA. At the same time, retirees from 1 July 2020 to 31 December 2020 will get 24 percent and retirees between 1 January 2021 to 30 June 2021 will get a retirement fund at the rate of 28 percent.
28% dearness allowance payment
Tiwari said that the employees who have retired between January 1, 2021 and June 30, 2021, will benefit greatly. Because the calculation of his retirement fund will be based on 28 percent dearness allowance. After this, those who have retired in July-December 2020, they will get less benefit, as the DA was 24 percent during that time. Then those retiring in January-June 2020 will get the benefit of 21 percent DA.
See calculation (people retiring in 1st January 2020-30 June 2021)
Basic Salary = Rs 40000 per month
11% DA Hike in one and a half year = Rs 4400 per month
Basic + DA = Rs 44400 per month
Benefit in Gratuity+Leave Encashment = around Rs 1,16,600