Srinagar, Dec 7: The Government today sanctioned the benefit of the notional percentage of Dearness Allowance (DA) for calculation of gratuity and cash equivalent of leave salary for its employees who retired after January 2020 up to June 2021.
In this regard, Finance Department said that sanction is hereby accorded for allowing the benefit of notional percentage of Dearness Allowance for calculation purpose of gratuity and payment of cash equivalent of leave salary in favour of Government employees who have retired on or after 01.01.2020 and up to 30.06.2021.
The Department said that the amount of Dearness Allowance to be taken into account for the calculation of gratuity and payment of cash equivalent of leave salary will be deemed as for the employees retiring from 01.01.2020 to 30.06.2020, there will be 21% of basic pay as notional Percentage of dearness allowance (DA) for calculating purpose.
For those retiring from 01.01.2020 to 30.06.2020, it will be as 21% of basic pay, for those retiring from 01.07.2020 to 31.12.202, it is going to be 24% of basic pay and for those retiring from 01.01.2021 to 30.06.2021, it will to be 28% of basic pay.
“The term basic pay shall mean that pay last drawn in the prescribed Level in the pay matric but does not include any other type of pay like special pay etc,” the Finance Department said while adding that it is going to be the one-time benefit in favour of Government employees who have retired on or after 01.01.2020 and up to 30.06.2021 and will be used to increase the salaries of Government employees retired during this period.