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Tag Archive : Regulation of Remuneration in case of contract appointment of Retired Central Government Employees

Regulation of Employment in Government Departments

Contractual basis employment for retired central government employees

Remuneration to retired central government employees

From 2008 to 2014, when Congress was in power in Centre, a rumour was being  circulated that the retirement age of Central Government Employees might be increased from 60 years to 62. However, when BJP under the leadership came in power in May 2014, this rumour was buried in the air forever.

As the BJP came in power, again a rumour started circulating among the central government employees that the age of retirement would be reduced either to 58 years or 55 years from 60 years. The first rumour brought applause among the central government employees whereas, second was a fear. Meanwhile, the state minister of state for personnel, Jitendra Singh, refuted that the age of retirement of civil servants would be reduced.

Now it is necessary to analyse why these two rumours were in the air and what its effect was on the civil servants.

In the 21st century, it is well known that the purchasing power of most Indians has increased and so have the government employees. Due to this, the standard of living, medical science, etc., has improved the lifestyle and life expectancy.

Earlier, most of the people of this country were unfit, malnourished, ailing, etc, and therefore, they were relieved from the duty once the civil servants reached the threshold of 60 years old. Currently, people are still healthy even after the threshold of  60 years old due to improvement in the standard of living, nourished diets, advanced medical treatment, etc. On the other hand, the long experience in different departments of the government employees who retired at 60 years of age create a gap of knowledge and experience in the workplace.

Under the leadership of Prime Minister, Narendra Modi, the government of India launched  Mission Karam Yogi, from 2nd September 2020 for the civil servants age to scale up the efficiency. On the other hand, an office memorandum, known as FR 56 J, of Periodic Review of Central Government Employees for strengthening of  administration under Fundamental Rule (FR) 56 (J)/(l) and Rule 48 of  CCS (Pension) Rules, 1972 (Order Copy), dated   28th August 2020 were issued for the Civil Servants between the age of 50 to 60 years old. Civil servants found unfit on its scale were compulsory retired to bring efficiency in the work. However, the number of employees given compulsory retirement are few.

It means inefficient civil servants were retired prior to 60 years of age to improve the efficiency in the work culture and is still continued by the Government of India. India would be a superpower only when the dependency on each and every sector on the foreign country is reduced, whereas, it must have the capability to play a crucial role on different international forums. 

Prime Minister Narendra Modi’s ambitious mission of India, Vishwa Guru (World Leader) is possible only when the red tapism and inefficiency is zero tolerated in civil services, whereas, the political will is high under his leadership which is more or less on its path. One may say that the second rumour of reducing the age is moreless implemented; only for those inefficient civil servants could be considered as the need of the hour. FR 56 is more or less also accepted by the civil servants. It is also applauded by the common men of this country that removal of ineligible employees will provide the opportunity of employment to the young generations and execution will be efficiently implemented.

It is also well known that the removal of inefficient employees further augments the efficiency of the civil servants as they start learning and adopting the new challenges to survive in different departments. This brought a major change among the employees and as the BJP is in power for more than 7 years in power, it may also be concluded that the government employees retiring at the age of 60 years old have better experience and loyalty towards its departments and therefore, they must be reemployed on the contractual basis.

Nowadays, there are advertisements on several newspapers and on the ministries and departments website that recruitment on the contractual basis of retired Central Government employees for different posts is on. It means that the recruitment of civil servants after the age of 60 years old shows that the age of retirement is indirectly increased. Firstly, civil servants are retired at the age of 60 years, thereafter, reemployed on contractual basis upto 65 years old. In some departments or ministries, relaxation of age is given up to 70 years old. It certainly proves that the first rumour in the air is also true which is indirectly implemented.

The two rumours in the air are partially implemented during the BJP regime to bring efficiency and improvement in the work culture in civil servants. As the recruitment under the contractual basis of central government is regularly conducted, therefore, the department of expenditure, ministry of finance has issued an office memorandum, dated 09.12.2020,  regulation of remuneration in case of contractual appointment of retired central government employees (Order Copy).

Important regulations are as follows:

i)  A fixed monthly amount shall be admissible, arrived at by deducting the basic pension from the pay drawn at the time of retirement. The amount of remuneration so fixed shall remain unchanged for the term of the contract. There will be no annual increment / percentage increase during the contract period. 

ii) The basic pension to be deducted from the last pay drawn shall be the pension as fixed at the time of retirement and as such, if the employee has availed of the commuted value of pension, the commuted portion of pension shall also be included in the portion of pension to be deducted. 

iii) No Increment and Dearness Allowance shall be allowed during the term of the contract. 

iv) An appropriate and fixed amount as Transport Allowance for the purpose of commuting between the residence and the place of work shall be allowed not exceeding the rate applicable to the appointee at the time of retirement. The amount so fixed shall remain unchanged during the term of appointment. However, retired employees engaged as consultants may be allowed TA/DA on official tour, if any, as per their entitlement at the time of retirement.

v) Paid leave of absence may be allowed at the rate of 1.5 days for each completed month of service. Accumulation of leave beyond a calendar year may not be allowed.

vi) The term of appointment shall ordinarily be for an initial period not exceeding one year which is extendable by another one year. Beyond two years after the age of superannuation where adequate justification exists, the term may be extended based on a review of the task and the performance of the contract appointee, provided it shall not be extended beyond 5 years after superannuation. 

vii) The consultant shall sign an agreement of confidentiality with the Government of India containing a clause on Ethics and Integrity. 

viii) The terms of appointment provided for in these orders shall not apply to cases and to the extent where the Appointments Committee of Cabinet has allowed special terms OR where special provisions have been allowed with the approval of the Department of Personnel & Training OR Department of Expenditure

ix) No HRA shall be admissible

x) These orders shall apply to appointments made in the Central Government and shall be effective from the date of issue of the orders, until further orders or until instructions are issued by DOPT regulating remuneration of retired Government employees on their engagement as consultants. The past cases shall not be reopened in the light of these orders until the normal term of those past cases. Any relaxation of the above will be required to be referred to the Department of Expenditure

Order Copy


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