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Appointment of retired central govt officials on contract basis: Govt floats draft norms for fixing remuneration

Having a pre-determined uniform salary structure for retired central government officials raises apprehensions of an incentive for officials to work towards that contractual appointment while in government service, along with impinging on the chances of officials employed at a lower scale.

By: ENS Economic Bureau | New Delhi | August 16, 2020 1:10:34 am
gst compensation, gst revenue loss, covid and gst loss, india lockdown gst, gst compensation to states, Prime Minister Narendra modi, Nirmala Sitharaman, indian express newsThe Centre and Opposition-ruled states are in conflict over the financing of the GST shortfall of Rs 2.35 lakh crore in the current fiscal. (File photo)

The government has floated draft norms for remuneration of contractual appointment of retired central government officials. In an office memorandum, the Department of Expenditure, Ministry of Finance, has cited absence of guidelines at present and need to have uniformity to regulate salary for such contractual employees, asking departments and ministries to submit their comments within 10 days.

For contractual appointment of central government officials on nomination basis, the remuneration would be fixed after deducting pension from the last-drawn salary at the time of retirement, while for open-market appointments, remuneration will be regulated as per the terms and conditions of the contract with no deduction of pension.

Having a pre-determined uniform salary structure for retired central government officials raises apprehensions of an incentive for officials to work towards that contractual appointment while in government service, along with impinging on the chances of officials employed at a lower scale.

The proposed move is also at odds with the guidelines for fixing appointment of retired government officials as members of regulatory bodies (except RBI) recommended by the 6th Pay Commission. As per the 6th Pay Commission, if a serving government employee is appointed as Member, he will be deemed retired and will be granted the same package, but may be considered for grant of a higher package provided they have not worked in the concerned sector in the preceding two years. Any serving Chairman/Member desirous of being paid the higher package will have to resign from the post and if re-selected, then he/she will be eligible for the higher package. The cooling off period of two years will, however, not apply in this case.

The existing instructions of Department of Personnel and Training (DoPT) state that re-employment beyond the superannuation age of 60 years is not permitted and if re-employment happens, then as per modified Central Civil Services (Revised Pay) Rules, 2016, the pay plus gross pension upon re-employment will not be over Rs 2.25 lakh per month, which is the pay level 17 applicable to the level of secretary to the government.

“It has been felt that there is a need to have uniformity to regulate the salary of such contractual appointment of retired central government employees,” the memorandum stated.

The draft guidelines have also proposed a cap of five years after the age of superannuation of 60 years for re-appointment. The initial term of appointment for a nominated retired government employee will be initially one year and then extendable by two years and then further based on performance and no increments or dearness allowance shall be permitted during the term of the contract. For those appointed on an open market basis, the term of appointment will be capped at five years after superannuation.

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