Loss of Gratuity and Leave Salary Due to Freezing of Dearness Allowance in case of person retired/to be retired after 1.1.2020

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Loss of Gratuity and Leave Salary Due to Freezing of Dearness Allowance in case of person retired/to be retired after 1.1.2020

Loss of Gratuity and Leave Salary Due to Freezing of Dearness Allowance in case of person retired/to be retired after 1.1.2020: JCM writes to DoPT

Shiva Gopal Mishra

National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi-110001

No.NC-JCM-2020/DOPT (DA)

October 08, 2020

The Secretary,
Government of India,
Department of Personnel & Training,
North Block,
New Delhi

Dear Sir,

Sub: computation of gratuity and leave encashment in the case of persons retired/to be retired after 1.1.2020 Consequent upon the denial of DA/DR

We invite your kind attention to the orders in F. No. 1/1/2020-E II (B) dated 23.04.2020 wherein the decision of the Government to deny the dearness allowance deafness relief to the employees and pensioners respectively has been conveyed. We had written two letters in the matter on 23rd April 2020 and on 26th May 2020. The undersigned had taken up the issue also with the Cabinet Secretary. when he assured of an informal discussion in the matter with the Staff Side. However. no talks have taken place thereafter. It is not for the first time that the Government is by pausing the National Council. Staff Side. On the last occasion. when the National Council met. we had pointed out the inordinate delay in convening the meetings. We are constrained to believe that the Government wanted the negotiating body to have a burial. I am however duty bound to convey the growing resentment of the employees over this unprecedented decision. As the Government has decided to deny the dearness relief to the pensioners. the pensioner community is in great financial stress as many of them are compelled to spend exorbitant amount for the treatment of Covid.

It has been brought to our notice that the denial of DA and freezing the same for Iced 18 months from 1.01.2020 to 1.07.2021 has created a piquant situation for the lower level administrative functionaries to correctly compute the retirement benefits in the case of those civil servants who are retiring after the date of issue of the above cited O.M. The definition of “emoluments” for the purpose of computing the gratuity as also the leave salary (of the accumulated leave) includes Dearness allowance as admissible and not as paid or payable to the Government servant. Without exception. every administrative Department has computed the entitlement on this account only with reference to the Basic pay Dearness allowance paid or received by the concerned individual i.e 17%, Either 21% w.e.f 1-1-2020 or figure increase in percentage are not taken into account while calculating gratuity and leave salary. Since the order of the Finance Ministry clearly stipulates that the Dearness Allowance admissible to the Government servants would be restored on 1.07.2021. the computation of Gratuity and leave salary without taking into account the DA as admissible to the individual Government servant is incorrect. Annexed to this letter is an example as to how the individual loses out if the present faulty, computation procedure is followed It could be seen from the given example, the concerned Government servant will lose a staggering sum of Rs. 57116 because of this faulty computation.

The Government is required to pass the orders as and when the DA has become due, Freezing it for certain period of time or denying it altogether for a specified duration are altogether different issues. Our objection to the adopted policy has already been conveyed to the Government. The faulty computation of Gratuity and Leave salary is not even intended by the order issued by the Government on 23rd April, 2020.

We, therefore. request you to kindly get the matter examined and ensure that

(i) Orders are issued as and when the Dearness allowance has to be revised on the basis of the cost of living index;
(ii) Direct the administering Ministries to compute the emoluments of persons who are to retire during the period of freezing, taking the correct amount of DA as admissible to receive and not what has been paid to him for computing gratuity and leave salary
(iii) The orders revising the rate of DA DR are to be issued in April, 2020, before September, 2020 and again in April, 2021.

Thanking you,

Yours faithfully,

Shiva Copal Mishra


Loss of Gratuity and Leave Salary Due to Freezing of Dearness Allowance of 21% w.e.f. 1-1-2020 – Example of a case:-


Gratuity Leave Encashment Loss due to DA Freeze – NC JCM letter 08-10-2020


  • Vasudev 3 years ago

    While releasing freezing of DA the government should at least order to consider the DA for Calculating Gratuity and Leave encashment for those who have retired during this period. Hope this will be considered by government.

  • Prem Jakhar 4 years ago

    Modi hai toh Mumkin hai

  • Waillingstone N. Marak 4 years ago

    When people while contesting elections that they will do this and that if they are are voted to power but after electing they become furious over government employees. Why do they do so? Was not the the government employees who worked tirelessly during the elections? Were not this indiscriminate actions against employees bring hazarduous to families of government employees ? Stop such actions or face the music performed by employees during elections.

  • Balakrishna Munnangi 4 years ago

    Freezing of DA and DR permanently is inhuman decision of the government 
    It is a matter of fact that the cost of essential commodities in the recent past during the pandemic period especially from April to August 2020 have been increased like anything and the common man including central government employees have bared this additional expenditure 

    We understand that the economy was under doldrums in the country during the pandemic period because of various factors 

    Now the economy position of the country is improving day by day because the industry and trading has come to normalcy and picking up drastically 

    As such the authorities should consider to restore the freezed DA and DR in a phased manner so that central government employees particularly low paid employees get benefitted from the loss they incurred by incurring additional expenditure during the pandemic period 

  • Teekamdass Rathi 4 years ago

    Matter of order is very clear. Continuos persu is essential.
    DA/DR be declared by Govt as and when it became due.
    Atleast benefits to retired persons and to be retired after 1.1.20 be given.
    Such type of order may be issued by Govt.

  • ALOKE KUMAR DAS DAS 4 years ago

    Pay protection will be given or not it’s not cleared. My DOA =20/12/75.Railway Board accepted the prayer for given me pay protection in 1979 to treated the whole period as Sup. Mistry. After that i came to o &m. Where no pay protection has given. Metro Railway declared open Railway. So I think that it is myself requested to pay. All the best. God bless all.

  • Srikantiah arkalgud 4 years ago


  • B Bramhachari 4 years ago

    I wish to know that weather pay protection for ex servicemen in railway is granted or not