CCS (Pension) Rules 1972: If there is a cut in the salary of central employees due to any penalty and he dies during this time, then the penalty will not affect the family pension and gratuity. According to the recent decision of the Department of Pension and Pensioners’ Welfare (DoPPW), the calculation of family pension and debt gratuity in such cases will be done on the basis of notional pay on the day of death of the employee. Notional pay will be considered as salary for calculation of family pension and death gratuity.
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Advice was sought from the department
DoPPW had received several queries regarding the issue that if a government employee dies during such a period, when he gets less salary due to penalty, then how will the family pension and death gratuity be decided in such a situation. In such a case, the effect of penalty is for a limited period and after that the worker gets full salary and increment again. In such a situation, questions were asked about it. The department was asked whether the calculation of family pension and gratuity would be done on the basis of reduced salary or if there was no penalty then on the basis of the salary received.
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Notional Pay will now be used instead of last pay
Regarding this issue, the department has now decided to use notional pay for calculating family pension and gratuity instead of last day’s salary of such employees. The department has said in the office memorandum dated 9 December 2021 that in case of death of a government employee, family pension or death gratuity will be calculated on the basis of notional pay. According to this memorandum, this rule has come into force with immediate effect but old cases will not be reopened. Although a government employee has died before the implementation of this rule, but the calculation of family pension and death gratuity has not been done yet, then in such a situation the new rules will be effective.
(Article: Rajeev Kumar)
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