Amendment to Leave Salary & Pensionary Contribution






GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
LEAVE RULES: - Recommendations of PRC 2010 - Encashment of
Leave on Half Pay at the time of retirement of Government Employees
– Orders – Issued.

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FINANCE (FR.I) DEPARTMENT
G.O.Ms.No. 154 Dated:04.05.2010
Read the following:-
1. G.O.Ms.No. 46, G.A. (Ser.Wel.) Department, dated 28.01.1994.
2. O.M.No.P.14025/11/82-Estt. (Leave), dated 25.08.1983of
Department of Personnel and Training, Government of India.
3. O.M.No. 14020/1/09-Estt. (L). dated 06.04.1993 of Department of
Personnel and Training, Government of India.
4. G.O.Ms.No.342, Finance and Planning (FW: FR-I) Department,
dt. 30.09.1994.
5. O.M.No.14028/3/2008- Estt. (L) dated: 25-09-08 of Department of
Personnel & Training Ministry of P.PG & Pension, Government of
India
6. G.O.Ms.No.438, G.A. (Spl. A) Department, dated: 07.07.2008.
7. G.O.Ms.No.598, G.A. (Spl. A) Department, dated: 26.11.2009.
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O R D E R S:-
In the reference 4th read above orders were issued extending the
benefit of encashment of Half Pay Leave to the State Government
Employees as applicable to the Central Government Employees as per
the reference 2nd and 3rd read above and based on the
recommendations of High Power Committee constituted in the G.O. 1st
read above.
2. In the Government Order 6th read above, orders were issued
constituting Ninth Pay Revision Commission and Government
appointed Sri. C.S. Rao, IAS, (Retd) as Pay Revision Commissioner. In
the Government Order 7th read above, the terms of reference of the
Pay Revision Commissioner were laid down.
3. The Ninth Pay Revision Commission submitted its report to the
Government on 05.12.2009 and recommended, inter alia, that, “The
Commission after examining the above requests recommends to
adopt the same formula in the case of encashment of Leave on
Half Pay at the time of retirement / death in the case of State
Employees also subject to the condition that the total number of
days of earned leave + leave on half pay put together should not
exceed 300 days for encashment”.
4. It is observed in the report that as per the existing orders, the
cash equivalent of leave salary on account of encashment of leave on
half pay shall be calculated in the manner indicated below.

Cash payment
in lieu of LHP
encashed




=

Leave salary on half pay
(+) D.A thereon if admissible
(-) pension (+) pension
equivalent of gratuity and
Dearness Relief on pension.
_________________________
                      30





X

Number of days of
Leave on half pay
due, subject to the
limits prescribed in
the rules.


5. The above formula was adopted based on the orders issued by
Government of India to its employees.
6. Based on the recommendations of 6th CPC, the Government of
India issued revised orders changing the formula in the following
manner- (vide O.M.No.14028/3/2008- Estt. (L) dated: 25-09-08 of
Department of Personnel & Training Ministry of P.PG & Pension,
Government of India, 5th read above).
Cash payment
in lieu of half
pay leave
Component



=

Half pay leave salary
admissible on the date of
retirement plus D.A.
admissible on that date
_______________________
                   30




X

No. of days of half
pay leave at credit
subject to the total of earned leave and half pay leave at credit not exceeding 300 days.

7. The Employees’ Associations requested to adopt the above
formula in the case of encashment of L.H.P. of the State Government
employees and the Commission after examining the above requests
recommends to adopt the same formula in the case of encashment of
Leave on Half Pay at the time of retirement / death in the case of State
Employees also subject to the condition that the total number of days
of earned leave + leave on half pay put together should not exceed 300
days for encashment.

8. After careful consideration of the report, Government decided to
accept the recommendations of the Pay Revision Commissioner and
hereby order that formula for calculation of encashment of Leave on
Half Pay at the time of retirement / death in the case of State
Employees shall be as follows subject to the condition that the total
number of days of earned leave + leave on half pay put together
should not exceed 300 days for encashment.
Formula
Cash payment
in lieu of half
pay leave
Component



=

Half pay leave salary
admissible on the date of
retirement plus D.A.
admissible on that date
_______________________
                   30




X

No. of days of half
pay leave at credit
subject to the total of earned leave and half pay leave at credit not exceeding 300 days.

9. These orders shall come into force with immediate effect.
10. The G.O is available on Internet and can be accessed at the
address http://www.ap.gov.in/goir and http://www.apfinance.gov.in.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
L.V. SUBRAHMANYAM

PRINCIPAL SECRETARY TO GOVERNMENT (FP)

--------------------------------
GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Foreign Service Terms and Conditions - Leave Salary & Pensionary Contribution
– Amendment to G.O. Ms. No. 160, Fin. (FR.II) Dept., dt. 7-5-2010 - Orders
issued.
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FINANCE (FR.II) DEPARTMENT
G.O.Ms.No. 302 Dated:28 -11-2012
Read the following:-
1. G.O.Ms.No.10, Finance (FR-II) Department,dt:22.01.1993
2. G.O. Ms. No. 160, Finance (FR.Ii) Department, dt. 7-5-210.
                                          * * *
O R D E R:
In the G.O. 2nd read above, on the recommendations of the 9th PRC certain orders were given regarding the payment of Leave salary and Pension contribution which is as follows:

Existing Para 2 (ix) to be deleted
Revised Para 2 (ix) to be inserted.
(ix) Leave salary and Pension
Contribution;
The foreign employer shall pay to
Government Leave Salary and Pension
contribution at the following rates:
(1) Rate of Leave salary contribution:
11% of the pay drawn in Foreign
service, if governed by Leave Rules in
Fundamental Rules or Hyderabad
Leave Rules, 1357 Fasli (1947)
Or
11% of pay drawn in Foreign
Service, if governed by A.P. leave rules,
1933 or Hyderabad Revised Leave
rules, 1952
(2) Rate of Pension contribution;
% of the maximum monthly Pay of the
grade held by the Govt. servant in
government service.
Note: the appropriate rate applicable
according to the Table of the rates in
Fundamental Rules 116 which are
based on length of Service should be
specified.
The above rates are only provisional
subject to revision by the Accountant
General/Pay and Accounts Officer,
Hyderabad, as the case may be. The
Foreign employer should remit to the
Accountant General, Andhra Pradesh,
Hyderabad, the amounts of the above
contributions every month by way of
demand drafts, the necessary charges

(ix) Leave Salary and Pension
contribution.
(a) While accepting the proposal of the
deputation, the competent authority should
include in the order of deputation a specific
clause regarding the recovery of Leave
Salary and Pension contribution and shall
mention the exceptional circumstances
under which the Government feels that
recovery of Leave salary and Pension
Contribution is warranted. If specific clause
is not mentioned in the deputation order, it
would be presumed that such a recovery is
waived.
(b) Verification regarding recovery of
Pension contribution shall be waived in
respect of all pension cases presently
under consideration and also the future
cases, if the officers worked on deputation
in the establishments such as Public sector
Undertakings which are wholly owned or
controlled by State Government or to any
State government company where the
State Government has a major share, or to
any Local Body or University or to any
Aided Institution which is under the control
of the state Government, even though their
original deputation orders stipulated
recovery of Leave Salary and Pension
contribution.
(c) even in respect of State
Government Companies, where there is no
Grant in aid, since the Government has a
major share, it should be treated as an
extension of Government service and
for which should be borne by the
Foreign employer.
contribution shall be waived. In respect of
deputation of officers from one grant-in-aid
institution to another grant-in-aid institution,
the leave salary and Pensionary
contributions shall also be waived, as in the
final analysis, the expenditure is met by the
Govt. In cases where officers from grantin-
aid institutions are deputed to work in
govt. or in Quasi Govt. organizations these
contributions shall be waived on the same
analogy.



2. While issuing the said orders the entire para 2 (ix) was deleted by
incorporation of the recommendations of the PRC 2009, because of which the
quantum of the amount payable by the foreign employer as Leave Salary and
Pension Contribution was also deleted. Consequently the rates at which Leave
Salary and Pension Contribution are to be paid, in cases where they are not
exempted, are not provided for in the said orders. Further, as per the orders in
the said G.O., if a clause is not mentioned in the orders of deputation regarding
Leave Salary & Pension Contribution to be paid by the borrower, the same is
not to be recovered from the borrowing institution/Department. Many lending
departments being unaware of the above clause and G.O. are still following only
G.O. Ms. No. 10, Finance, dt. 22-1-1993, and not mentioning the clause
regarding recovery of Leave Salary and Pension Contribution in the deputation
orders, even where the two components are to be paid Consequently, by
default, Government is losing the two contributions.
3. In view of the above position, and after careful examination of the issue, it
is decided by the government to issue an amendment to G.O.Ms. No. 160,
Finance (FR.II) Dept., dated 7-5-2010, as follows:

                                        AMENDMENT
(A) In the table given under para 5 of the said G.O. in place of Revised
Para 2 (ix) the following is to be replaced.

Existing para 2 (ix) as per G.O. Ms. No.
160, Fin. (FR.II) Dept., dt. 7-5-2010
Newly inserted para 2 (ix)


(ix) Leave Salary and Pension
contribution.
(a) While accepting the proposal of
the deputation, the competent authority
should include in the order of
deputation a specific clause regarding
the recovery of Leave Salary and
Pension contribution and shall mention
the exceptional circumstances under
which the Government feels that
recovery of Leave salary and Pension
Contribution is warranted. If specific clause is not mentioned in the
deputation order, it would be presumed
that such a recovery is waived.
(b) Verification regarding recovery
of Pension contribution shall be waived
in respect of all pension cases
presently under consideration and also
the future cases, if the officers worked
on deputation in the establishments
such as Public sector Undertakings
which are wholly owned or controlled
by State Government or to any State
government company where the State
Government has a major share, or to
any Local Body or University or to any
Aided Institution which is under the
control of the state Government, even
though their original deputation orders
stipulated recovery of Leave Salary
and Pension contribution.
© even in respect of State
Government Companies, where there
is no Grant in aid, since the
Government has a major share, it
should be treated as an extension of
Government service and contribution
shall be waived. In respect of
deputation of officers from one grant-inaid
institution to another grant-in-aid
institution, the leave salary and
Pensionary contributions shall also be
waived, as in the final analysis, the
expenditure is met by the Govt. In
cases where officers from grant-in-aid
institutions are deputed to work in govt.
or in Quasi Govt. organizations these
contributions shall be waived on the
same analogy.

(ix) Leave Salary and Pension
contribution:
(a) While accepting the
proposal of the deputation, the
competent authority should include in
the order of deputation a specific
clause regarding the waiver of the
recovery of Leave Salary and Pension
contribution and shall mention the
exceptional circumstances under which
the competent authority feels that the
waiver of recovery of Leave Salary and Pension contribution is warranted. If
specific clause relating to waiver of
Leave salary and Pension contribution
is not mentioned in the deputation
order, then such recovery is applicable
as per the rates mentioned in FR. 116.
(b) When the borrowing institutions
are of Central Govt./other State
Govts./or the State Govt. Institutions in
A.P. which receive funds from other
sources such as world Bank/Central
Govt. and the other institutions whose
source of income is from other than
Govt. of A.P./ and other institutions of
A.P., like Universities/Local Bodies
etc., who receive funds from Govt. of
A.P. to some extent only and receive
funds from other sources for the
remaining extent, then such institutions
shall pay Leave salary and pension
contribution for borrowing Government
servants. In other words Institutions
which receive 100% of funds from
Govt. of A.P. only are eligible for
exemption of Leave salary and Pension
contribution mentioned in G.O. Ms. No.
160, Fin. (FR.II) Dept., dt. 7-5-2010.
© “In every case where the
recovery of Leave salary and Pension
Contribution is necessary the same
shall be effected at the following rates.
1) Leave salary Contribution:
11% of the pay drawn in Foreign
Service
2) Rate of Pension contribution:
% of the maximum monthly Pay of
the post held by the Govt. Servant in
Government Service, at the time of
proceeding on Foreign Service.
Note: 1. The appropriate rate
applicable according to the table of the
rates under Fundamental Rule 116
which are based on length of service
should be specified.
Note: 2. When waiver of Leave Salary
and Pension Contribution is not
mentioned in the order, it shall be
deemed to be recovered from the
borrowing department.




4. These orders will come into force with immediate effect.
5. This order is available in the Internet and can be accessed at the address
http://www.aponline.gov.in and http://www.apfinance.gov.in.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
DR. D. SAMBASIVA RAO
PRL. SECRETARYTO GOVERNMENT (FP)

 (ix) Leave Salary and Pension contribution:

(a) (i) While accepting the proposal of the deputation, the competent
authority should include in the order of deputation a specific clause regarding the
waiver of the recovery of Leave Salary and Pension contribution and shall
mention the exceptional circumstances under which the competent authority
feels that the waiver of recovery of Leave Salary and Pension contribution is
warranted. If specific clause relating to waiver of Leave salary and Pension
contribution is not mentioned in the deputation order, then such recovery is
applicable as per the rates mentioned in FR. 116.

(ii) When the borrowing institutions are of central Govt./other State
Govts./or the State Govt. Institutions in A.P. which receive funds from other
sources such as world Bank/Central Govt. and the other institutions whose
source of income is from other than Govt. of A.P./ and other institutions of A.P.,
like Universities/Local Bodies etc., who receive funds from Govt. of A.P. to some
extent only and receive funds from other sources for the remaining extent, then
such institutions shall pay Leave salary and pension contribution for borrowing
Government servants. In other words Institutions which receive 100% of funds
from Govt. of A.P. only are eligible for exemption of Leave salary and Pension
contribution mentioned in G.O. Ms. No. 160, Fin. (FR.II) Dept., dt. 7-5-2010.

(B) At the end of clause (c) in the Revised Para 2 (ix) the following is to be
added:

(d) “In every case where the recovery of Leave salary and Pension
Contribution is necessary the same shall be effected at the following rates.

1)    Leave salary Contribution:

11% of the pay drawn in Foreign Service
2) Rate of Pension contribution:
% of the maximum monthly Pay of the post held by the Govt.
Servant in Government Service, at the time of proceeding on Foreign
Service.

Note: 1. The appropriate rate applicable according to the table of the
rates in Fundamental Rules 116 which are based on length of
service should be specified.

Note: 2. When waiver of Leave Salary and Pension Contribution is not
mentioned in the order, it shall be deemed to be recovered from
the borrowing department.
Amendment to Leave Salary & Pensionary Contribution Amendment to Leave Salary & Pensionary Contribution Reviewed by Ajit Kumar on 12:00 AM Rating: 5

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