Financial benefits for the employees recruited after 01-01-2004

Financial benefits for the employees recruited after 01-01-2004.

                       Hello guys, how are you? We hope you are doing well. Here in this post, we will discuss the financial benefits that are available for the employees who recruited after 01-01-2004. Every employee who has been recruited after 01-01-2004 is always confused that what he will get after his or her retirement or his dependents after his death.

                    So in this post, we will remove all that kind of confusion. Kindly read the post thoroughly and completely to know about each and everything. Below is the list of financial benefits that are available for the employees recruited after 01-01-2004:-

1.    Leave encashment;
2.    Gratuity;
3.    Payment of Contributory Provident Fund;
4.    Ex-Gratia(Paid to the family in case of death of the government employee);
5.    Employment to the legal heirs of the government employee on compassionate ground. 

Leave encashment

                    As we have already discussed completely regarding leave encashment in our previous post. An employee who is recruited after 01-01-2004 is also entitled to leave encashment on his or her retirement. 

                  The employee shall be entitled to a cash payment in lieu of unutilized leave at his credit on the date of retirement. Also, leave encashment shall be payable to the family of the government in case of his death before retirement. The method of calculation of leave encashment remains the same.

Example:     Suppose an employee joined as a clerk on 07-12-2011 forenoon and he died on 18-12-2020. He was drawing basic pay 15050+4400= 19,450/-. Till his death, he has not taken any earned leave. 

            Then his family will get leave encashment of 138 earned leaves amounting to Rupees 2,32,986/-. For complete calculation check our previous post of Leave encashment.

Gratuity

                       The government of Punjab has decided to extend the benefits of "Retirement Gratuity and Death Gratuity" to its employees covered under NPS vide letter No.2/19/2016-2FPPC/203 dated 05-02-2020. Now the NPS employees that are the employees who recruited after 01-01-2004 shall also be entitled to Gratuity.

                    Minimum 5 years of service is required to become eligible for Gratuity at the time of retirement. Provided that this condition is not necessary in case of where the termination of the employment of the government employee is due to death or disablement.

Example:      Assume an employee has joined as a clerk on 17-06-2014 forenoon and he died on 18-10-2018. He was drawing basic pay 12470+3200 = 15,670/-. Till his death, he has not availed any without pay leave.

                        As it is clear from the above, the employee has rendered less than five years of qualifying service. Then his family will get Gratuity six times the emoluments amounting to Rupees 2,29,038/- as calculated below:-

{15670+784(5% IR)+21719(132% DA)}x 6 = 2,29,038/-

for all Gratuity, rates click here.

                        Rest of the sections that is point number 3,4 and 5 we will discuss our next post till then bye. Thanks for reading. Share this post with your colleagues and follow this website and also follow us on Facebook. 

Please give your comments as it will encourage us to share more useful things with you.