Ex-Gretia, Gratuity and Increase in Matching share.

Ex-Gretia, Gratuity and Increase in Matching Share.    

Ex-Gretia, Gratuity and Increase in Matching share.

                   January 5, 2020 Yes, January 5, 2020, this day will be very special for the employees of the Punjab Government who were recruited on or after 01-01-2004. Three letters were issued in the same day, acknowledging some of the long-standing demands of the employee unions. These letters were issued on various topics related to employees working under the new pension scheme. Let us discuss them one by one.

Ex-Gretia:

               About one year ago, A decision was made by Finance Department (Finance Pension Policy and Coordination Branch) of the Punjab Government regarding grant of Ex-Gratia to the employees who were recruited after 01-01-2004 by their Letter No. 2/19/2016-2FPPC/563 dated 10th March 2019. By giving reference to already issued letters No.3/19/10-3FPPC/1251 Dated: 13-10-2010 and letter No.3/19/10-3FPPC /1368 Dated: 16-12-2011, it was clarified that the benefits provided through the above letters would also be available to employees covered under the New Defined Contributory Pension Scheme (commonly known as the new pension scheme).

                         After the issuance of this letter all the offices were raising the question as to what date the letter was considered to be applicable that is if any employee dies after the date on which the letter was issued then he will receive Ex-Gretia or according to the letter dated 13-10-2010 mentioned in the quote, the employees who died after this date will be eligible for the same. Now the Punjab Government Finance Department (Finance Pension Policy and Coordination Branch) issued clarification regarding grant of Ex-Gretia to employees covered under the new Pension Scheme by their letter No.2/19/2016-2FPPC/208 dated 05-02-2020. Referring to the letter stated earlier, it was clarified that this letter will be effective from 01-01-2004. Means legal heir of an employee will be entitled for Ex-Gretia grant if death occurs on or after 1-1-2004.

Gratuity:

                       Finance Department (Finance Pension Policy and Coordination Branch) of the Punjab Government issued letter No.2/19/2016-2FPPC/203 dated 05-02-2020 regarding extension of benefits of Retirement Gratuity and Death Gratuity to the Punjab Government employees covered by the New Defined Contributory Pension Scheme that is NPS. Government of Punjab has decided to extend the benefits of "Retirement Gratuity and Death Gratuity" to its employees covered under NPS on the same terms and conditions as per rule 6.16,6.16-A,6.16-B and 6.16-C of Punjab Civil Service Rules volume II in so far as they relate to Death-cum-Retirement Gratuity. These order shall made applicable to all Punjab Government employees, who joined service on or after 1-1-2004 and are covered by NPS and shal be applicable with effect from 1-1-2004.

Matching Share in NPS:

                         Finance Department (Finance Pension Policy and Coordination Branch) of the Punjab Government issued letter No.2/19/2016-2FPPC/198 dated 05-02-2020 regarding increase in the Matching share of the Government of Punjab 10% of Basic+DA to 14% of Basic+DA under new defined contributory pension scheme. The Government of Punjab has decided to enhance its monthly matching contribution from 10% to 14% of Basic Pay+DA for its employees covered under NPS. One thing that should kept in mind about this letter this letter is effective from first of April,2019.
                                 All of this happens on February 5,2020.To download all of the letters, simply click on letter numbers it will automatically become visible. We think this information will be very useful for you. For more latest letters and Instructions and to get updated kindly follow our website.