Gratuity & pension on superannuation
Laxminarasimhulu.Garlapati
(Querist) 28 June 2009
This query is : Resolved
Sir attachment ( previous communication of DPE issued in the year 1995) is copied below for ready reference.
" The Department of Public Sector Enterprises in its Circular No.2 (50)/86-DPE(WC) dated 19.07.1995 has stated:
“Public Sector Enterprises are considered as ‘State’ under the provisions of article 12 of the constitution of India. Both the Supreme Court and the various High Courts have given directions in the recent past either for restoration of parity in the scales of pay in one PSE with that of another PSE or removal of anomalies. In order to avoid further litigation, it has, therefore, been proposed that the scales of pay of the incumbents of the top posts, executives holding posts below the board level and non-unionized supervisors would be similar in all PSEs irrespective of profit or loss made by them”.
A V Vishal
(Expert) 28 June 2009
Mr Garlapati
What is your query?
Laxminarasimhulu.Garlapati
(Querist) 28 June 2009
Sir,
My self and friends have retired from service on different dates (1.1.2006 to 31.12.2006) after serving for 20-30 years of service. Based on my length of service and last salary drawn the Gratuity amount payable worked out to Rs.5.5 Lakhs to 9 Lakhs approx.
But actual Gratuity was paid Rs.3.5 Lakhs on the grounds that is the maximum ceiling under payment of Gratuity Act.
Now, Govt. of India has recently implemented VIth pay commission for central Govt. employees w.e.f.1.1.2006 as per which the maximum ceiling of Death cum retirment Gratuity is enahnced from Rs.3.5 Lakhs to Rs.10 Lakhs.
Similarly, the Department of Public Enter prises which operates under the Ministry of Heavy Industires & Public Enter prises that monitors all business & adminstrative matters of 220+ central public sector undertakings under the administrative control of different Ministries of Govt. of India, has issued two different guide lines applicable to
(i) to 69 central pblic sector undertakings for revision of wages of employees including payment of enhanced Gratuity w.e.f.1.1.2006 on par with central Govt. Employees.
(ii)Another guidelines for the remaining psus whose wage revision was due w.e.f. 1.1.2007.
Based on the above guide lines DPE ONGC and some other psus have started implementation of wage revision and also Enahnced Gratuity w.e.f 1.1.2007.
Thus, the employees retired during 1.1.2006 to 31.12.2006 are denied payment of enhanced Gratuity that comes to an extent of Rs.6.5 Lakhs.
Whether these sr.citizens retired 1.1.2006 to 31.12.2006 have to loose the social security benefit of enahanced Gratuity just because of linking the same to two different wage revision due dates.
In this regard the Office memoraundm issued by the same DPE in the past -1995 is copied below for ready reference to examine the issue sir.
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Contents of Ealier Circular No.2 (50)/86-DPE(WC) dated 19.07.1995 issued by the same DPE sates:
“Public Sector Enterprises are considered as ‘State’ under the provisions of article 12 of the constitution of India. Both the Supreme Court and the various High Courts have given directions in the recent past either for restoration of parity in the scales of pay in one PSE with that of another PSE or removal of anomalies. In order to avoid further litigation, it has, therefore, been proposed that the scales of pay of the incumbents of the top posts, executives holding posts below the board level and non-unionized supervisors would be similar in all PSEs irrespective of profit or loss made by them”.
Laxminarasimhulu.Garlapati
(Querist) 28 June 2009
Shri AV Vishal,
the issue indetail has since been posted for examination by legal experts and guide the sr.citizens who are retired and in dire financial crisis because of very very low regular monthly income of Rs.2000/to Rs.3,000/- not having any other source of income.
Kindly get the issue examined by legal experts and guide what need to be done by the retirees to get their genuine rightful social secuity of enhanced gratuity which can provide some support for retirees.
Thanks & regards
retiree
A V Vishal
(Expert) 28 June 2009
Dear Sri Garlapati,
Surely there is a disparity but it is to be checked on what basis different dates were considered for the operation of the scheme. Further, I suggest to consult a good lawyer dealing with service matters since I am not well versed with the subject relating to service matters. I personally request all the professional brethren in this forum to post their useful advises on the matter.
Laxminarasimhulu.Garlapati
(Querist) 29 June 2009
Dear Avinash,
The reason for different dates is because of last wage revision to PSUs was done w.e.f. 1.1.1997 that was valid for 10 years & hence the new wage revision is made effective from 1.1.2007.
Similarly the wage revision date 1.1.2006 for central Govt. employees and 69 other PSUs is last pay commission date.
Although two different pay revision dates catogorised in to two groups, the question is whether for payment of Gratuity can be linked solely to the wage revision date,
since Gratuity is to be paid on retirement whereas wage revision benefits will be appliable for those in service and thereafter.
If two different wage revision dates may be because of different revision due dates, can the social security benefit of Gratuity can be different which are all under the GOI and operate under the presidential directives of GOI.
thanks for your response
