Withholding of 10% gratuity from the retiring Government servants -clarification regarding.

No.20/16/1998-P&PW(F)
Government of India
Ministry of Personnel Public Grievances and Pensions
Department of Pension and Pensioners Welfare

3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi-110 003
Dated the 19th February 2013.

OFFICE MEMORANDUM

Subject:- Withholding of 10% gratuity from the retiring Government servants -clarification regarding.

   The undersigned is directed to say that this Department has been receiving representations from individuals and Pensioners Associations that Government Departments have been withholding 10% of the amount of gratuity from each retirees even when they had not been provided any Government accommodation.

   2. The recovery and adjustment of Govt. dues from retirement gratuity is regulated under Rules 71 to 73 of the CCS (Pension) Rules, 1972. Rule (1) to (3) of Rule 72 ibid provide for recovery of actual amount of Govt. dues in respect of Govt. accommodation from pay & allowances before retirement and from Retirement Gratuity. Sub rule (5) of Rule 72 ibid stipulates that if, in any particular case, it is not possible for the Directorate of Estates to determine the outstanding licence fee, that Directorate shall inform the Head of Office that ten per cent of gratuity may be withheld pending receipt of further information. The withheld amount of gratuity is to be paid back to government servant immediately on production of 'No Demand Certificate' (NDC) from Dte of Estates. Thus, if no 'Govt. dues' in respect of Govt. accommodation are outstanding then the rules do not provide for Withholding of any part of the gratuity on retirement of the Govt. servant. If no Government accommodation is allotted to a Government servant, in accordance with Dte of Estate's OM NO.18011/511990-Pol-IIIdated 12.10.2010, it is for the Administrative Ministry to issue an 'NDC".

   3. As regards recovery in respect of 'Govt. dues' other than those pertaining to Govt. accommodation, the Head of Office is required to complete assessment of such dues eight months prior to the date of retirement [Rule 73(2)]. The actual amount of such dues and the dues which come to the notice subsequently and remaining outstanding are to be adjusted against the amount of retirement gratuity becoming payable to the Govt. servant on retirement. Thus, there is no provision for withholding any part of gratuity for the purpose of recovery of outstanding government dues other than those pertaining to government accommodation.

sd/-
(Tripti P. Ghosh)
Director

Source:http://ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/Gratuity_20022013.pdf

Pension- Contributory Pension Scheme- Employees contribution and Government contribution- Enhancement of rate of interest at the rate of 8.6% - Orders - Issued.

GOVERNMENT OF TAMIL NADU
2013

FINANCE (PGC) DEPARTMENT
G.O.No.38,  Dated: 11th February, 2013

Pension- Contributory Pension Scheme- Employees contribution and Government contribution- Enhancement of rate of interest at the rate of 8.6% - Orders - Issued.

Read the following:-

   1. G.O.Ms.No.222, Finance (Pension) Department, dated.3.6.2008.

   2. G.O.Ms.No.106, Finance (Allowances) Department, dated 30.3.2012.

   3. From the Principal Accountant General, Chennai-18 letter No.GPF-14/CPS/SO/382- 119134, dated 24.8.12 and 27.12.2012.

   4. Government letter No.49690/PGC/2012, dated 2.1.2013.

ORDER:

   In the reference first cited the rate of interest for Contributory Pension Scheme has been fixed at the rate of 8% with effect from 1.4.2003.

   2.  In the reference second cited the rate of interest for General Provident Fund and other Provident Funds including Contributory  Provident Fund has been enhanced at the rate of 8.6% with effect from 1.12.2011.

   3.  Accordingly, the Government have decided to enhance the rate of interest for Contributory Pension Scheme also and ordered that the rate of interest for Contributory Pension Scheme is fixed at the rate of 8% upto 30.11.2011 and at the rate of 8.6% with effect from 1.12.2011.

   4.  The above rate of interest will remain the same until further orders issued in this regard.

(BY ORDER OF THE GOVERNOR)

S. KRISHNAN,
Secretary to Government (Expenditure)

Source:http://www.tn.gov.in/gosdb/gorders/finance/fin_e_38_2013.pdf

Government Initiatives on proposed Strike by the Central Trade Unions.

   As directed by the Prime Minister, senior Ministers in the Union Cabinet – Shri A.K. Antony, Defence Minister, Shri Sharad Pawar, Minister for Agriculture and Shri Mallikarjun Kharge, Minister for Labour & Employment held a round of discussions with the representatives of the Central Trade Unions on the evening of 18th February to convey the serious intent of the Government to resolve the various issues raised in their charter of demands. The list of participants is at.

   The representatives of the Central Trade Unions reiterated their demand for the Government to take concrete measures to contain price rise, to ensure employment generation, strict enforcement of labour laws, universal social security for unorganized and organized workers, stoppage of disinvestment in Central and State Public Sector Undertakings. Some of the issues raised by them also related to payment of minimum wages of Rs.10,000/-, abolition of contract labour, payment of equal wages and benefits to contract workers at par with regular workers, removal of all ceilings on payment and eligibility of bonus, provident fund, increasing the quantum of gratuity, assured pension for all, compulsory registration of trade unions within 45 days and immediate ratification of the ILO Convention No.87 and 98.

  The Ministers explained to the representatives of the Central Trade Unions the various measures taken by the Government to control price-rise and contain inflation in the country. Particular attention was drawn to the huge food subsidy incurred by the Government to ensure availability of food grains to the poor at very concessional rates through the Public Distribution System. The Government’s efforts to pass the Food Security Bill in the Parliament will further increase the availability of subsidized food grains to the larger segments of the population and the Government is prepared to meet the extra burden on this account. The Government’s commitment to help the poor is also evident from the large amount of subsidy for fertilizers and fuel to ensure their supply at reasonable rate to the people.

   The Government is also keen to introduce amendments to the Contract Labour (Regulation & Abolition) Act, 1970, Minimum Wages Act, 1948 and various other labour laws to improve the conditions of the workers and to give them substantial relief. A National Employment Policy is going to be announced shortly to encourage higher employment to women, to promote skill development and inclusive growth. Some of these proposals are going to be discussed in the meetings of the Union Cabinet shortly. The Government has already approved the National Manufacturing Policy in November, 2011 which envisages the creation of 100 million jobs in the country by 2022.

   The Ministers pointed out the huge loss to the economy in case the strike is resorted to by the Central Trade Unions. Apart from substantial production loss, the strike is also likely to cause inconvenience to the general public and loss of wages to the workers. In view of this, the Ministers appealed to the Central Trade Union Leaders to call off the strike.

   At the end of the meeting, the representatives of the Central Trade Unions informed that they are going to discuss the proposal of the Government in a meeting on 19th Feb., 2013 and take further decision on the proposed strike.

Source: PIB